China's Ugly Export Secret: Prison Labor

Two months ago, a Chinese shoe factory in Guangdong province urgently summoned a Hong Kong-based agent selling to U. S. shoe companies. The factory needed extra labor to fill his sandal order, so could he approve a new subcontractor right away? After a two-hour drive, the American was escorted into a complex of some 20 workshops producing shoes, flashlights, and hardware. Inside, he saw 150 men, all shaved bald, wearing blue cotton pajamas with numbers across the breast. "This isn't any factory," the American thought to himself. "I'm in a prison."

It is hard to imagine jailed Tiananmen activists slaving to assemble sneakers for sale in the U. S. But the truth is chilling. China's trade officials are crafting a secret policy to use labor from its camps and prisons to manufacture exports specifically for the U. S., Germany, and Japan. China is desperate for hard currency. The booming coastal provinces, where marketing and production skills are highest and joint ventures abound, are being promoted as the showcases for successful prison exports.