The U.S. Department of Homeland Security announced on Wednesday (October 2) that it will prohibit the importation of goods from Baowu Group’s Xinjiang Bayi Iron and Steel Co., Ltd. and Changzhou Guanghui Food Additives Co., Ltd., alleging that these two companies are involved in using products from forced labor in Xinjiang region.
This action expands the scope of the U.S. boycott of products allegedly violating human rights from China. The Department of Homeland Security stated that under the Uyghur Forced Labor Prevention Act (UFLPA), the addition of these entities to the list marks the first time that U.S. enforcement agencies have targeted Chinese steel companies or aspartame businesses.
According to the Associated Press, Robert Silvers, the Deputy Secretary for Policy at the Department of Homeland Security, said, “Today’s action once again demonstrates our commitment to eliminating forced labor from the U.S. supply chain and upholding our values on all human rights.”
“No industry is off-limits,” he said. “We will continue to identify entities from various sectors and hold accountable those who seek to profit from exploitation and abuse.”
The Chinese Communist Party has been accused of human rights violations against Uighurs and other Muslim minority groups in Xinjiang. President Biden signed the Uyghur Forced Labor Prevention Act at the end of 2021, making it federal law. Beijing denies these accusations, claiming that their actions in Xinjiang, such as establishing concentration camps, are aimed at combating terrorism and maintaining stability.
The signing of the Uyghur Forced Labor Prevention Act signifies a shift in the U.S.-China trade relationship, with the U.S. increasingly considering national security and human rights issues. Beijing accuses the U.S. of using human rights as an excuse to suppress China’s economic growth.
Initially targeting solar products, tomatoes, cotton, and apparel, the enforcement of the Uyghur Forced Labor Prevention Act has expanded over the past few months to include more industries suspected of using forced labor, including aluminum and seafood.
Silvers stated at a trade panel meeting in June, “This reflects a sad reality that forced labor continues to taint too many supply chains.” At that time, it was the two-year anniversary of the creation of the entities list under the Uyghur Forced Labor Prevention Act. He said, “From an industry standpoint, our enforcement scope is actually quite broad.”
He mentioned that this law holds “importers responsible for understanding their supply chain,” and its enforcement shows that the U.S. can “do the right thing” without disrupting normal trade.
Since June 2022, the number of entities on the list has increased to 75 companies, as per the Department of Homeland Security, all accused of using forced labor in Xinjiang or procuring materials related to forced labor.