In Hunan Chishan Prison, which appears to be an ordinary provincial prison, is in fact a hidden factory with an annual output value exceeding one billion yuan. Over two thousand prisoners are detained here, forced to labor every day, creating an economic value of over one billion yuan annually. Official budget documents show that Chishan Prison receives over one hundred million yuan in financial allocation. In other words, the prison relies on government funding while also generating revenue through forced prisoner labor, forming a semi-commercialized operation model.
On September 18th, Chinese human rights activist Shi Minglei, residing in the United States, revealed that prisoners at Hunan Chishan Prison are forced to work 10 to 12 hours a day in high-temperature workshops with only electric fans and no air conditioning. Through the Hunan Province Prison Administration official website, she found that the total revenue of Chishan Prison in 2025 is approximately 160 million yuan, with 130 million yuan coming from government allocations and the rest from subsidies and balances.
Shi Minglei told reporters, “I was very surprised to see these numbers on the official website of the Hunan Prison Administration. Based on calculations from nearly two thousand prisons in mainland China, this is a significant amount. Prisons produce almost everything, including sports shoes and other products that are even exported to the United States.”
Chishan Prison, located in Yuanjiang City, Yiyang City, detains over two thousand prisoners. A review by Epoch Times journalists on the Hunan Province Prison Administration website revealed the “2025 Hunan Province Chishan Prison Unit Budget” report issued on March 11th this year. The report indicates that Chishan Prison has an income budget of 159.7768 million yuan, with a general public budget allocation of 129.885 million yuan, superior financial subsidies of 9.08 million yuan, and carry-over from the previous year of 12.571 million yuan. Compared to last year, the income decreased by 17.8303 million yuan.
The budget report, totaling 8 pages, explains that these funds are mainly used to pay police salaries and for prison operations. On paper, Chishan Prison is an institution maintained by financial allocations. However, the budget table does not list the earnings from prisoner labor. According to insiders, the annual production value of Chishan Prison exceeds one billion yuan, covering export processing and light manufacturing. This hidden income is not reflected in the budget documents but serves as a crucial pillar in maintaining prison operations.
Guo Min, former deputy director of a police station in Zhuzhou City Public Security Bureau, mentioned in an interview that Chinese Communist Party prisons often cooperate with external companies to generate revenue, with the biggest advantage being low labor costs: “Prisons use inmates to produce goods, with extremely low treatment for the inmates. Inmates lose their freedom and basic rights, only being subjected to forced labor arrangements.”
Therefore, the financial structure of Chishan Prison presents a “dual-track system.” Legal scholar Mr. Tian analyzed, “On one hand, it relies on financial allocations to sustain basic operations and, on the other hand, earns substantial hidden profits by exploiting the cheap labor of prisoners. Since prisoners have little bargaining power, labor costs are compressed to a very low level.”
Mr. Tian further stated that with an estimated average annual production value of 50,000 yuan per inmate at Chishan Prison, over two thousand prisoners could generate over one billion yuan in production value annually, equivalent to the scale of financial allocations. He emphasized that under the circumstances where prisoners lack choices and endure high-intensity labor, their situation aligns with the International Labor Organization’s definition of “forced labor.”
Guo Min added that the situation at Chishan Prison is widespread in mainland China, with a similar profit model: “Mainland China has nearly two thousand prisons with a total of approximately four million prisoners. The forced labor of Uyghurs in Xinjiang cotton picking has sparked international boycotts. However, using prison inmates for revenue generation is a prominent feature of the Chinese Communist Party.”
Regarding the working hours, he revealed that the determination often depends on the urgency of the orders: “If orders are urgent, inmates have to work overtime, even on double shifts, each lasting 12 hours.”
If calculated based on the model of Chishan Prison, the annual production value of prison labor in mainland China may reach as high as 2 trillion yuan, equivalent to the GDP of a medium-sized province in China.
Criminal defense lawyer Mr. Tian pointed out that the public budget documents of prisons only display financial allocations. “The other track supported by prisoner labor is quietly operating nationwide and has infiltrated local finances and industrial chains. With the current economic downturn in China, this situation will only worsen.”
Furthermore, it is essential to note that the products of these prison enterprises are not only sold domestically but also enter the international market through foreign trade channels. Prior revelations through media and internal sources suggest that some textile products, components, and daily goods from the United States, Canada, Germany, Australia, and EU countries may carry the imprint of “prison labor.”
A Muslim from Xinjiang, requesting anonymity, told reporters, “Many young people who were once detained in concentration camps were later transferred to work in companies in Jiangxi and other regions. Although not in prison anymore, their monthly wages are only 3,000 yuan, and the labor contracts they signed are stamped by a prison in Xinjiang.”
Despite the substantial production capacity of mainland Chinese prisons, it has rarely entered international public opinion. Even if multinational companies enhance supply chain traceability, it is challenging to entirely avoid this hidden pollution.
Mr. Zhou, a lawyer from Guangdong, introduced that prisoners in local prisons produce dried flowers, plastic flowers, socks, while prisons in Shandong produce candles and other products, with a significant portion being exported overseas. He stated, “The international community has long set clear boundaries on ‘prisoner labor products’. Once the products of prison enterprises flow into the international market through the supply chain, they directly violate international trade norms.”
Mr. Zhou believes that in the absence of effective supervision, the labor rights of Chinese prisoners cannot be guaranteed. This is not only a domestic human rights issue but also carries the risk of compliance in international trade. He urged the Chinese authorities to enhance the transparency of prison finances, publicly disclose detailed allocations and revenue, allow independent third-party monitoring and audits. Additionally, there should be reasonable working hours and basic protections in place to prevent labor reform from deteriorating into low-wage sweatshops.