U.S. Bans Steel and Sweetener Made by Chinese Companies Linked to Uyghur Forced Labor

The United States has banned steel and an artificial sweetener produced by two Chinese companies tied to forced labor practices under the Uyghur Forced Labor Prevention Act (UFLPA). The ban comes as part of an ongoing effort to pressure China to cease the use of forced labor, particularly in the Xinjiang region, where Uyghurs and other ethnic minorities are being exploited in forced labor programs.

The UFLPA, which took effect in June 2022, prohibits the import of any goods made with forced labor from the Xinjiang Uyghur Autonomous Region of China. Under the act, any goods made in Xinjiang or by entities on the Department of Homeland Security (DHS) entities list are automatically assumed to involve forced labor. To bring such goods into the U.S., importers must provide extensive supply chain documentation to U.S. Customs and Border Protection proving the products were not made with slave labor, according to DHS guidelines.

Businesses have expressed difficulties in meeting the UFLPA's stringent requirements. Despite these challenges, U.S. officials emphasize the importance of the law in combatting forced labor in global supply chains. “The UFLPA is catalyzing American businesses to fully examine and assess their supply chains and setting a new standard for our international partners as we work together to eradicate forced labor from the global economy,” said Alejandro Mayorkas, Secretary of Homeland Security, in a press release on Wednesday.

China, however, is not standing idle. Reports suggest that Beijing is considering retaliatory measures against PVH, the company behind popular brands like Calvin Klein and Tommy Hilfiger, due to its decision since 2020 to stop sourcing cotton from Xinjiang. According to *The Wall Street Journal*, the Chinese government could prohibit PVH from selling its brands or purchasing materials throughout China.

As of Thursday, any goods produced by Baowu Group Xinjiang Bayi Iron and Steel Co. will be automatically assumed to involve forced labor, the DHS announced. Also known as Bayi Iron and Steel, the company produces rebar, hot-rolled coils, and steel plates, and mines iron ore. U.S. authorities believe the company collaborates with Xinjiang labor programs to move and employ Uyghurs, Kazakhs, Kyrgyz, and other oppressed groups in forced labor schemes.

Similarly, products made by Changzhou Guanghui Food Ingredients Co., a company that produces the artificial sweetener aspartame, have also been banned. The company, also known as GSweet Changzhou Guanghui Food Technology Co., is believed to source ingredients from the Xinjiang region, according to U.S. officials.

These two companies bring the number of businesses on the UFLPA banned entities list to 75. The list already includes companies involved in industries such as clothing, polysilicon, electronics, chemicals, batteries, agriculture, and household appliances. In addition to the new bans, DHS also announced that Hefei Meiling Co., a company previously placed on the list, has now changed its name to Changhong Meiling Co.

As the U.S. government continues to crack down on forced labor, businesses with ties to Xinjiang or those named on the entities list face growing pressure to ensure their supply chains are free from forced labor practices.

By fLEXI tEAM