"Using their vast pools of free labour, China's prisons produce everything from green tea to coal, paperclips to footballs, medical gloves to high-grade optical equipment."

http://www.goiam.org/index.php/news/iam-news/2007-iam-news-a...

"Prison Labor is also being exploited in China, according to executive director of the Laogai Research Foundation Harry Wu, who said prison laborers make garments, electronic components, coffee mugs and toys that end up in U.S. stores. “The Chinese government continues to use forced labor to make goods, condones sweatshop conditions in its factories, and refuses to allow workers to create independent unions-- is it really any wonder that low-quality, harmful toys are being exported to the US and into the hands of our children?” said Wu, who spent 19 years in a Chinese prison.

Wal-Mart was singled out for their role in allowing the exploitation of cheap Chinese labor. “Wal-Mart bears a lion’s share of responsibility for pushing the toy industry into a region where product safety and worker safety inspection is virtually nonexistent,” said Bama Athreya, executive director of the International Labor Rights Forum."

http://commdocs.house.gov/committees/intlrel/hfa45502.000/hf...

1998 FORCED LABOR IN CHINA - HEARING BEFORE THE SUBCOMMITEE ON INTERNATIONAL OPERATIONS AND HUMAN RIGHTS