As we all know, the coronavirus pandemic has had a huge impact on the Chinese manufacturing economy. However, last week the Chinese Communist Party declared that worst of their epidemic over and urged factory workers to return to their jobs.

Not all did. A significant proportion of Chinese workers chose to remain in self-quarantine. Reports are that the manufacturing sector of the Chinese economy is presently running at less than half of pre-coronavirus levels.

It is also now being reported that some number of Chinese factories are being staffed by “forced labor”. What that means varies by report… reports that can be seen in many major news outlets in the West.

The point is this. U.S. corporations operating internationally are subject to the tenets of the Foreign Corrupt Practices Act (FCPA), as well as other laws meant to ensure they maintain proper business practices worldwide. Generally, these laws are applicable to not only U.S. corporate subsidiaries, but also to third-party vendors from whom U.S. companies buy products.

As the present global medical emergency plays out, there will be fallout in many unexpected areas of the economy. One may be a slew of U.S. law suits that emerge from the labor practices presently being used in China.

U.S. companies should closely consider risks associated with purchasing products from China in this present environment. FGN manufactures our flexitanks in Indonesia and can be an alternative for companies normally buying Chinese made flexitanks.