The US has added 26 Chinese cotton enterprises to its list of prohibited imports.
On Thursday, the United States took action to prohibit goods from 26 Chinese cotton traders and warehouse facilities believed to be involved in forced Uyghur labor, a move expected to increase pressure on supply chains.
According to the Department of Homeland Security, companies from various provinces across China, including Henan, Jiangsu, Hubei, and Fujian, have been added to the forced-labor Entity List, bringing the total to 76 entities.
Washington has been actively addressing what it alleges as the utilization of forced labor in China's Xinjiang region, home to the predominantly Muslim Turkic Uyghurs and other minority groups facing severe human rights violations. China refutes these accusations, asserting that its labor programs aim to alleviate poverty.
The Uyghur Forced Labor Prevention Act generally prohibits imports sourced "wholly or in part" from Xinjiang, a significant cotton-supplying region. Enforcement measures have led to approximately $3 billion in flagged shipments at the border since the act's implementation in June 2022.
Goods originating from Xinjiang are automatically assumed to involve forced labor under the UFLPA unless "clear and convincing evidence".
The Entity List identifies specific companies whose products or components thereof are to be blocked from entering the United States. Particular sectors, such as cotton, tomatoes, and polysilicon (an essential raw material for solar panels), are under extra scrutiny.
A significant challenge faced by the U.S. government is the lack of transparency in domestic supply chains within China, notes researcher Adrian Zenz. He underscores the importance of monitoring intra-Chinese supply chains to counter labor transfers to other provinces.
"Xinjiang itself doesn't export much of what it produces," he explains. "The greatest risk arises through intermediaries, and the Entity List is well-suited to address this issue."
Zenz's research reveals an escalated use of cross-provincial labor transfers by Chinese authorities last year, complicating U.S. Customs' enforcement of the UFLPA.
He estimates a 38% increase in the number of laborers transferred under the "pairing assistance" program from 2022 to 2023. However, he cautions that the understanding of labor transfer programs may diminish due to the Chinese government's cessation of statistical publication.
While the UFLPA aims to combat forced labor, it presents challenges for companies outside China. U.S. Customs and Border Protection data indicates that over 5,500 of the roughly 8,500 flagged shipments originated from Malaysia, Vietnam, Thailand, and India.
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