The US imposes de facto ban on imports from China’s Xinjiang region in December 2021.

Context

In December 2021, US President Joseph Biden signed into law new legislation that required any suppliers of imports made in China’s Xinjiang region to prove that their products were not manufactured using forced labour. Due to the difficulty of supplying this proof, the measure was widely viewed as amounting to a de facto ban on imports. The legislation, named the Uyghur Forced Labor Prevention Act (UFLPA), had earlier been passed unanimously in both the US Senate and with a high degree of bipartisanship in the US House of Representatives. Its lead sponsor in the US’ Republican Party, Marco Rubio, justified it by saying that “It (Xinjiang) is a horrifying human rights situation, fully sanctioned – as we now know – by the Communist Party of China.”

The broader context to this law is US-China geopolitical competition. China’s Ministry of Commerce called the measure “economic bullying” and expressed “strong dissatisfaction and firm opposition” to it.  

Impact

The law came into effect on June 21, 2022. It is thought to have particularly impacted the fashion/garment industry, with 20 per cent of the world’s cotton coming from China, and 84 per cent of China’s cotton originating in Xinjiang region. In addition to cotton, the measure also specifies polysilicon and tomatoes as industries with a “high priority for enforcement”.

Responses  

i) Chinese government and industry responses.

Prior to its implementation, Chinese Foreign Ministry spokesperson Zhao Lijian stated, “If the act is implemented, it will severely disrupt normal cooperation between China and the US, as well as global industrial and production chains.” Shortly after, China dismissed the US claims regarding the existence of forced labor in the Xinjiang region as a “big lie concocted by anti-China forces,” adding, “With this so-called law, the United States is trying to create forced unemployment in Xinjiang and push the world to decouple from China.” Beijing also reportedly warned of potential retaliation. Furthermore, the Chinese government alleged that the US had abused the ‘entity list’ to deliberately suppress the development of the solar industry in Xinjiang, arguing that this not only constituted a serious violation of international trade rules and market economy principles but also disrupted global supply chains.

Stanley Szeto, the executive chair of Hong Kong-based apparel supply chain manager Lever Style, responded by suggesting that the firm could pivot to alternative suppliers, saying that “[w]e still buy most of our cotton fabric in mainland China, but we can quickly switch to buying fabrics in other places.”

(ii) US government and industry responses

Prior to the legislation being passed, in July 2021, the Biden administration issued a business advisory, warning US firms that “businesses and individuals that do not exit supply chains, ventures, and/or investments connected to Xinjiang could run a high risk of violating U.S. law.” Notably, following this advisory US firm Intel wrote to its Chinese suppliers that it would need to “ensure that its supply chain does not use any labor or source goods or services from the Xinjiang region.” But soon after this notice was issued Intel issued a second, Chinese language, statement, in which it “apologize(d) for the trouble caused to our respected Chinese customers, partners and the public.” This prompted US White House Press Secretary Jen Psaki to indirectly note that “American companies should never feel the need to apologize for standing up for fundamental human rights or opposing repression.”

Some major US firms, including Apple and Coca-Cola, reportedly lobbied the US government against the introduction of the measure. However, major US labour union, the AFL-CIO, had urged the Biden administration to stop importing solar products from Xinjiang which were allegedly built through forced labour.

Status

At time of writing (December 2024) the US has continued to target specific firms alleged to have been using forced labour in Xinjiang Province.

In October 2024 two additional China-based firms were added to the law’s associated entity list – steel manufacturer Baowu Group Xinjiang Bayi Iron and Steel Co. Ltd., and artificial sweetener maker Changzhou Guanghui Food Ingredients Co. Ltd. 

Also in September-October 2024, the Chinese Ministry of Commmerce initiated an investigation into the US multinational PVH (owner of brands such as Tommy Hilfiger, Calvin Klein and Warner’s), looking to add it to the Chinese ‘unreliable entities’ list due to concerns that the group was “violating the principles of normal market transactions, interrupting normal transactions with Chinese enterprises, other organizations or individuals, and taking discriminatory measures for Xinjiang-related products.”

On 22 November 2024, the US Department of Homeland Security added 29 Chinese companies to the Uyghur Forced Labor Prevention Act Entity List, stating in its Official Announcement that “Companies should not secure unfair advantages by exploiting workers. We will enforce our laws to address forced labour and prevent companies that violate workers’ rights from benefiting from the US market…” On 26 November 2024, the Chinese Ministry of Commerce responded that the ” practice of the United States has no factual basis. It is a typical act of economic coercion to bully in the name of ‘human rights”.”

Reference list

ABC News. 2022. “US implements import ban on goods from China’s Xinjiang over allegations of forced labour, genocide against Uyghurs.” June 22. Available at:

https://www.abc.net.au/news/2022-06-22/us-bans-imports-from-china-xinjiang-uyghurs/101172712

AlJazeera. 2021. “China calls US law on Xinjiang imports ‘economic bullying’”. December 24. Available at: https://www.aljazeera.com/news/2021/12/24/china-us-law-xinjiang-ban-economic-bullying-uighurs

Associated Press. 2024. “US bans new types of goods from China over allegations of forced labor.” VOA. October 2. Available at: https://www.voanews.com/a/us-bans-new-types-of-goods-from-china-over-allegations-of-forced-labor-/7808643.html

Britten, F. 2022. “US ban on cotton from forced Uyghur labour comes into force.” The Guardian. June 21. Available at: https://www.theguardian.com/world/2022/ jun/21/us-ban-on-cotton-from-forced-uyghur-labour-comes-into-force

Ministry of Commerce of the People’s Republic of China. 2024 ‘Announcement on the Working Mechanism of the Unreliable Entity List on the Launch of the Unreliable Entity List Survey of U.S. PVH Group’ [不可靠实体清单工作机制关于对美国PVH集团启动不可靠实体清单调查的公告] (24 September 2024] available at https://www.mofcom.gov.cn/zcfb/zc/art/2024/art_5148fedb0a9545e2b61c07d5b94678e3.html

Ministry of Commerce of the People’s Republic of China. 2024. ‘Response to the incident that the US added 29 Chinese companies to the entity list under the Uyghur Forced Labor Prevention Act’ [商务部新闻发言人就美国将29家中国企业列入所谓涉疆法案实体清单答记者问] (26 November 2024), available at: https://www.mofcom.gov.cn/xwfb/xwfyrth/art/2024/art_f93934685195435a8a7cbf4ce0389da0.html.

Ministry of Foreign Affairs of the People’s Republic of China. 2021. ‘Spokesman for the Ministry of Foreign Affairs, Zhao Lijian, held a regular press conference on 16 March 2021’ [2021年3月16日外交部发言人赵立坚主持例行记者会]. March 16. Available at: https://www.fmprc.gov.cn/fyrbt_673021/jzhsl_673025/202103/t20210316_9604782.shtml

Ministry of Foreign Affairs of the People’s Republic of China. 2021. ‘Spokesman for the Ministry of Foreign Affairs, Zhao Lijian, held a regular press conference on 24 June 2021’ [2021年6月24日外交部发言人赵立坚主持例行记者会]. June 24. Available at: https://www.mfa.gov.cn/fyrbt_673021/jzhsl_673025/202106/t20210624_9171293.shtml.

Macias, A. 2021. “U.S. bans imports from China’s Xinjiang region, citing human rights abuses.” CNBC. December 23. Available at: https://www.cnbc.com/2021/12/23/us-bans-imports-from-chinas-xinjiang-region-citing-uyghur-forced-labor.html

United States Trade Representative, “‘Department of Homeland Security Adds 29 Entities to the Uyghur Forced Labor Prevention Act Entity List”’” (22 November 2024), available at: https://ustr.gov/about-us/policy-offices/press-office/press-releases/2024/november/department-homeland-security-adds-29-entities-uyghur-forced-labor-prevention-act-entity-list

US Congress. 2021-22. “H.R.6256 – To ensure that goods made with forced labor in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China do not enter the United States market, and for other purposes.” Available at: https://www.congress. gov/bill/117th-congress/house-bill/6256?__cf_chl_jschl_tk__=1Y_617EyQNI2lNRcLnWs6u6P5PXBSlpMo1Kil9iWBuI-1640273908-0-gaNycGzNCKU

Yiu, P. 2022. “Companies braced for chaos as Xinjiang import ban starts in US.” The Financial Times. June 29. Available at: https://www.ft.com/content/f205b47a-923e-431d-8d92-eb05ab12f216