Production has been indefinitely halted at a Chinese supplier to Samsung Electronics Co Ltd after the factory was suspected of using child workers. Samsung, the world's biggest smartphone maker, said last week it had stopped doing business with the Dongguan Shinyang Electronics factory, a wholly owned subsidiary of South Korea's Shinyang Engineering Co Ltd, after an audit led to evidence of what Samsung called suspected child labor. The senior management at Dongguan Shinyang declined to meet or speak to the Reuters reporters who recently visited the plant.The local government is conducting an investigation into the factory, according to a statement on its website dated July 16, two days after Samsung suspended its business. Samsung's decision to halt business with Dongguan Shinyang comes less than a week after U.S.-based China Labour Watch said it found "at least five child workers" without contracts at the supplier and called Samsung's monitoring process to halt such practices "ineffective."
Sign up for top Business news direct to your inbox.
First published July 21 2014, 7:26 AM