The U.S. Adds 5 More Chinese Companies to the Uyghur Forced Labour List

The latest expansion of the UFLPA list is a sign of America’s ongoing dedication to making forced labour an economically unsustainable practice.

In its efforts to block imports linked to forced labour, the United States added five more companies to its Uyghur Forced Labour Prevention Act (UFLPA) Entity List, bringing the total number of banned companies to 73.

These 73 manufacturers and exporters are accused of using Uyghur forced labour in China’s Xinjiang region as part of what Beijing refers to as its “poverty alleviation” program. 

The ban on these five new companies, which went into effect on August 9, 2024, follows a broader prohibition and tightens restrictions on goods suspected of violating human rights practices.

The UFLPA list includes companies that work with the government of the Xinjiang Uyghur Autonomous Region to recruit and transport Uyghurs, Kazakhs, Kyrgyz, or other persecuted groups. It also recognizes companies that source materials from Xinjiang or suppliers who collaborate with the government of Xinjiang. 

The Forced Labour Enforcement Task Force (FLETF), an interagency task force that includes the Departments of Homeland Security, Labor, State, and Commerce, among others, plays a critical role in enforcing the UFLPA.

The FLETF will continue investigating additional companies that meet the inclusion criteria and add them to the list accordingly.

U.S. efforts committed to eliminating forced labour

In light of this expanded ban, the U.S. Department of Homeland Security (DHS) emphasized its commitment to eradicating forced labour in global supply chains.

DHS Secretary Alejandro Mayorkas stated that the agency would continue to identify companies that use forced labour and ensure their goods remain out of U.S. markets.

The DHS vowed to continue blacklisting entities found to be involved in forced labour practices, ensuring that American consumers are not supporting human rights violations abroad—whether directly or indirectly.

Moreover, Robert Silvers, DHS Under Secretary and Chair of the FLETF, urged businesses to conduct due diligence to avoid contributing to human rights abuses.

U.S. companies must now ensure that their supply chains are free of any association with forced labour, a task that industry groups have called both necessary and complex.

The companies impacted by the ban

Among the companies listed in the UFLPA are fertilizer manufacturer Rare Earth Magnesium Technology Group Holdings and its parent company Century Sunshine Group Holdings, both based in Hong Kong.

These two firms are accused of sourcing raw materials from Xinjiang, which is widely known for its use of forced labour.

Kashgar Construction Engineering (Group) Co Ltd, Xinjiang Habahe Ashele Copper Co Ltd, and Xinjiang Tengxiang Magnesium Products Co Ltd have also been linked to directly employing Uyghur forced labour.

The complete list of the 73 banned manufacturers and exporters can be found in this Federal Register Notice.

Human rights concerns behind the ban

The UFLPA, enacted in December 2021, was introduced in response to what the U.S. government has labelled as “genocide” and “crimes against humanity” by China, targeting Uyghurs and other minority groups in Xinjiang.

The goal of the UFLPA is to ensure that no product linked to these human rights violations enters U.S. supply chains.

In addition to the recent UFLPA additions, the U.S. has accused China of sterilizing Uyghur women and detaining Uyghurs in high-security camps as part of its oppression of minority groups.

Beijing, in response, has denied these allegations and accused the U.S. of using the human rights card as an excuse to limit the growth of Chinese enterprises.

Despite these denials, the U.S. remains committed to ensuring American businesses are not part of the abuses happening in Xinjiang.

Uyghur activists and organizations supported the U.S. decision, including the Washington-based Campaign for Uyghurs. Rushan Abbas, Executive Director of the Campaign for Uyghurs, said that Uyghur forced labour has become a “profitable venture” for Chinese businesses.

Abbas highlighted that by expanding the UFLPA Entity List, “the U.S. government is sending a strong message: it is committed to making this human rights crisis economically unsustainable.”

She also stated that international companies and governments must unite to take substantial action, and that merely condemning China is not enough.

For more information about how this ban could affect your imports from China, please reach out to one of our trade professionals.