Wednesday, October 04, 2023

Ramping Up Sanctions Related Pressure on US Enterprises in Sport: Congressional-Executive Commission on China (CECC) Versus National Basketball Association and its Players Association

 

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The  Congressional-Executive Commission on China (CECC), like other American authorities, have stepped up their pressure on US companies to more resolutely comply with US based sanctions regimes directed. among other places, to China. To that end they have been engaging in what I have called a two thrust policy: The US Two-Thrust Campaign Against Chinese Policy in Xinjiang: The Congressional-Executive Commission on China (CECC) Coordinates Use of Markets (NBA Endorsements) and Statutes (Uyghur Forced Labor Prevention Act). High on their lists of companies targeted are US sports leagues, and in particular the National Basketball Association, its teams, owners, and players.

The NBA is wildly popular in China, and its business there is estimated to be worth $5 billion. Last year, ESPN examined the investments of 40 principal owners and found that they collectively have more than $10 billion tied up in China. Tensions between the league and the government first surfaced in 2019 when then-Rockets general manager Daryl Morey tweeted support for pro-democracy protesters in Hong Kong. The Chinese government responded by banning the NBA from state TV for most of three seasons, and a number of Chinese sponsors fled. The sanctions ultimately cost the NBA hundreds of millions of dollars. (Bipartisan commission calls on NBA to end use of apparel made by forced labor in China)

 CECC continued developing this strategy in July 2023 when it hosted a hearing: CECC hearing titled “Corporate Complicity: Subsidizing the PRC’s Human Rights Violations.”  (see also Submitted Testimony). Now CECC has again ramped up the pressure. In a press release dated 3 October 2023, 

The Chairs of the bipartisan and bicameral Congressional-Executive Commission on China (CECC) today released two letters—one to Commissioner Adam Silver of the National Basketball Association (NBA) and one to President C.J. McCollum of the National Association Players Association (NBPA)—raising questions about their respective business operations relating to the People’s Republic of China (PRC) and asking them to prohibit the use or sale of NBA-branded gear and garments or NBA game-day shoes made with forced labor and any sportswear from companies that endorse the use of cotton and rayon and other materials from the Xinjiang Uyghur Autonomous Region (XUAR)—such as Anta, Li-Ning, and Peak. (Chairs Ask NBA and NBPA for Stance on Forced Labor and Freedom of Expression)

 The Press Release (with links) follows below., along with the letter to the Players' Association.

 

 

 

Chairs Ask NBA and NBPA for Stance on Forced Labor and Freedom of Expression

 

October 3, 2023

 

(Washington)  The Chairs of the bipartisan and bicameral Congressional-Executive Commission on China (CECC) today released two letters—one to Commissioner Adam Silver of the National Basketball Association (NBA) and one to President C.J. McCollum of the National Association Players Association (NBPA)—raising questions about their respective business operations relating to the People’s Republic of China (PRC) and asking them to prohibit the use or sale of NBA-branded gear and garments or NBA game-day shoes made with forced labor and any sportswear from companies that endorse the use of cotton and rayon and other materials from the Xinjiang Uyghur Autonomous Region (XUAR)—such as Anta, Li-Ning, and Peak.

 

The letters come in response to a CECC hearing titled “Corporate Complicity: Subsidizing the PRC’s Human Rights Violations,” held in July 2023. The NBA was one of the businesses discussed in-depth, featuring witness testimony from human rights advocate and former NBA basketball player Enes Kanter Freedom. In Mr. Freedom’s testimony, he exposed the NBA and NBPA’s efforts to silence his criticism of the PRC’s human rights record. He detailed that even though he “paid thousands of dollars to the Players Association every month to protect my rights against the NBA… on this topic, they were on NBA’s side.” The letters released today raise questions about how the NBA and NBPA intend to address the risk of their exporting the PRC’s values of censorship to the United States.

 

This is the second time the Commission wrote to NBPA on this topic. In 2021, the Commissioners urged the NBPA to raise awareness about genocide and forced labor occurring in the XUAR and its connection to Chinese sportswear companies.  The Chairs were disappointed by the NBPA’s answer at that time and urge a more “fulsome response” this time.  

 

Signed copies of the letters to the NBA and NBPA can be found in the hyperlinks accordingly. 


*       *       *


September 28, 2023
C.J. McCollum, President
National Basketball Players Association
1133 Avenue of the Americas
New York, NY 10036


Dear Mr. McCollum:

As the NBA season is set to begin next month, we are writing to you to raise concerns about the
National Basketball Players Association’s (NBPA)’s potential complicity in the People’s Republic
of China (PRC)’s use of forced labor in the Xinjiang Autonomous Uyghur Region (XUAR) and
the censorship demanded by the PRC for access to its markets.

Just one day after NBA veteran Enes Kanter Freedom testified before our bipartisan and bicameral
Commission that the NBPA pressured him to stop his criticism of the PRC’s horrific human rights
abuses, we learned that NBA basketball player Kyrie Irving signed a new shoe deal with Chinese
sportswear company ANTA—a brand linked to the forced labor of Uyghur, Kazakh, and other
predominantly Muslim ethnic minorities in the XUAR. Given Mr. Freedom’s testimony and Mr.
Irving’s shoe deal, we write to ask questions about the NBPA’s official positions on the free speech
of NBA players and on forced labor likely used in making the gear endorsed and worn by those
same players. We ask that you answer the questions we pose in this letter as soon as possible, as
we are compiling information for future reports and a congressional hearing where we may request
your testimony.

Mr. Freedom shared that although he paid “thousands of dollars to the Players Association every
month to protect my rights,” the NBPA pressured him to stop wearing shoes emblazoned with
messages about the PRC’s human rights abuses—including Uyghur forced labor. Mr. Freedom
ultimately lost his NBA career after exercising his freedom of expression. His release—ending a
11-year NBA career—was one of the most high-profile cases showcasing the NBA’s acquiescence
to the PRC’s demands that criticism of it be silenced. It was disheartening to us to learn that the
union representing NBA players was complicit in muzzling Mr. Freedom and bringing Chinese
censorship to the United States.

Mr. Freedom wore shoes with messages about PRC atrocities because, as he told us, “when I was
a kid watching an NBA game, the first thing I looked at was the NBA players’ shoes... the next day
I was asking my dad to please buy them for me. Every kid loves shoes, so I want to inspire the
young generation with something I knew they would pay attention to.” Shoes and sports gear made
in China, particularly those from Chinese sportswear companies, are likely made with forced labor
and it is against U.S. law to import the products of forced labor into the United States. The U.S.
government has determined the Chinese government is committing genocide in the XUAR and
prohibited imports from the region because these goods fund the PRC’s atrocities. Manufacturing
in China relies heavily on cotton, rayon, and other synthetic fibers made or harvested in the XUAR.
These are well-known facts, documented since 2018 by this Commission, the United Nations and
the U.S. government. NBA players should not be subsidizing genocide by endorsing or wearing
shoes and gear from Chinese sportwear companies complicit in forced labor.

In 2021 we wrote your predecessors at the NBPA, urging them to raise awareness about genocide
and forced labor occurring in the XUAR and its connection to ANTA, Li-Ning, Peak, and other
sportwear companies. The response at that time was extremely disappointing. While the genocide
continues, ANTA, Peak and Li-Ning likely continue to profit from the systematic use of forced
labor in the XUAR. Furthermore, we have urged U.S Custom and Border Protection to stop all
imports of goods from these companies. We hope your responses to our questions are more robust
than that of your predecessors.

The NBPA supported efforts by NBA players to take public stands on important political and social
issues in our country. We hope the NBPA, as the leading union protecting NBA players, will help
educate players on the risks in endorsing forced labor-made gear and shoes, as well as the link
between them and genocide in China. In addition, we hope the NBPA will protect the rights of all
players who do wish to speak out in support of human rights in China. We respectfully ask that
you respond to the following questions:

• Do you know if anything was done to educate NBA players about the risks of endorsing
Chinese sportswear companies following receipt of our Commission’s letter in June 2021?
If no steps have been taken to address the issues raised in the letter, can you explain to us
why?
• Department of Homeland Security Under Secretary Robert Silvers stated that “forced labor
is a scourge that violates human rights, undermines the rule of law, and harms American
workers and businesses.” Do you agree with this sentiment? If so, do you believe it would
be important for the NBPA to take a public stand on removing forced labor-made products
from the NBA and to inform NBA players on the topic of forced labor? Can you share with
us the NBPA’s policy on forced labor? If you don’t have one, why not?
• While some NBA players profit from endorsements with Chinese sportswear companies,
Mr. Freedom was reportedly pressured by the NBPA to stop his information campaign
about human rights abuses in the PRC and ultimately lost his NBA career. Can you please
share the rationale behind the NBPA’s decision to condone NBA player contracts with
companies complicit in genocide while declining to support players’ exercise of their
freedom of speech?
• Given that Chinese sportswear companies continue to endorse the sourcing of materials
made or grown in the XUAR—the import of which violates U.S. law—will the NBPA
prohibit NBA players from wearing or endorsing such companies until they end their
endorsements? If not, why not and what policies are in place to ensure that NBA players
do not endorse shoes, garments, or gear made with forced labor?
We trust that you will thoroughly review these questions and take them into consideration to
protect the players you serve and the fans who buy the shoes and gear endorsed by NBA players.

We thank you for your time and look forward to your response.
 

Sincerely,
Representative Chris Smith Senator Jeffrey A. Merkley
Chair Cochai

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