The U.S. Customs and Border Protection (CBP) announced late last night (Sept. 24) that bicycles, parts, and accessories manufactured in Taiwan by Giant Manufacturing Co. have been seized due to findings of forced labor in its supply chain. Labor groups in Taiwan note that this marks the first time in the history of the nation’s manufacturing sector that products have been blocked by the U.S. on labor rights grounds. They warned that many other Taiwanese companies face similar issues, meaning the scope of such sanctions could expand. Unless the government and industries overhaul migrant labor policies, Taiwan’s exports may soon be rejected in Western markets. “Will Taiwanese products end up being sold only to China, where human rights are disregarded?” one labor advocate asked.
According to the CBP press release, the Withhold Release Order took immediate effect, targeting Giant’s bicycles, components, and accessories for violating Title 19, U.S. Code, Section 1307, which prohibits imports made with forced labor.
The CBP investigation, applying International Labour Organization (ILO) indicators, cited Giant for exploiting workers’ vulnerabilities, coercive working and living conditions, debt bondage, wage withholding, and excessive overtime. The agency said Giant profited from this exploitation, undermining fair competition for U.S. businesses.
A First for Taiwan’s Manufacturing Sector
Wang Ying-da, Policy Director of Serve the People Association (SPA), confirmed that Giant is the first Taiwanese manufacturer—beyond the distant-water fishing industry—to have products seized by the U.S. over labor rights violations.
He explained that while Taiwan’s textile sector had previously been flagged by the American Apparel & Footwear Association (AAFA) and Fair Labor Association (FLA), those cases involved calls for reform through brand pressure rather than direct seizures. The CBP, however, operates under a quasi-judicial principle of “no complaint, no action.” Wang suggested Giant was likely reported, triggering an investigation that uncovered exploitation of migrant workers in Taiwan factories—including broker fees, coercion, poor working conditions, and excessive overtime.
Wang warned that similar practices are widespread across Taiwan’s industries, from semiconductors to basic manufacturing. Even companies like TSMC, which do not directly employ migrant workers, rely on suppliers that do. “All eleven ILO forced labor indicators are commonly seen in Taiwan’s migrant labor system,” he said.
If Taiwan fails to act, Wang cautioned, the problem will spread: “Today the U.S. sanctioned the bicycle industry. Tomorrow, another sector will be next. If both the U.S. and EU shut their doors, will Taiwan settle for selling only to China, which doesn’t care about human rights?” He urged the government to align with the ILO’s Fair Recruitment principles, which prohibit workers from paying recruitment fees. “Even if immediate reform isn’t possible, at least publish a timeline. Step up inspections. Show real commitment,” he said.
Labor Coalition: Compliance with International Standards Essential Yang Shu-wei, Secretary-General of the Taiwan Labour Front, stressed that while Taiwan’s Labor Standards Act exists, courts often fail to recognize cases as forced labor. The U.S. government’s direct intervention signals a turning point.
Yang criticized the Ministry of Economic Affairs for failing to release its second National Action Plan on Business and Human Rights, despite its due date this year. “The responsibility remains unclear, and the delay is unacceptable,” he said.
He also pointed to excessive migrant broker fees in Taiwan, which clearly violate ILO’s forced labor indicators. As industries demand looser restrictions to recruit more migrant workers, Yang warned, the government must ensure such hiring does not perpetuate forced labor. “If Taiwanese manufacturing wants to keep doing business internationally, it must comply with global standards,” he concluded, noting that stricter EU forced labor regulations are imminent.
Government Response
In response to the seizure of Giant’s products, Taiwan’s Ministry of Labor (MOL) pledged to work with local governments to immediately investigate the factories involved. The ministry said it will coordinate with the Ministry of Economic Affairs to help Giant draft corrective measures and substantively improve labor conditions, in order to resolve the forced labor allegations and protect workers’ rights.
[NOWnews / Chung Hung-liang, Taipei]2025-09-25 15:43:46
[photo by Vladislav Bychkov]