US Blacklists 29 Chinese Companies Over Forced Labor

Aerial view of a combine harvester working at a wheat field in Xinjiang, China, on July 8, 2021. Que Hure/VCG via Getty Images

The Department of Homeland Security (DHS) on Nov. 22 blacklisted 29 Chinese companies over the use of forced labor, bringing the total to 107. The companies produced a wide range of goods, from foods to pharmaceuticals to gold and technology.

“Forced labor is a violation of basic human rights,” Secretary of Homeland Security Alejandro N. Mayorkas said in a statement. “The United States is making progress towards the eradication of forced labor while supporting economic fairness, safeguarding human rights, and holding perpetrators accountable.”

Since the Uyghur Forced Labor Prevention Act (UFLPA) went into effect in 2022, the United States has sought to eliminate forced labor from its supply chains.

The law is named after the Uyghur Muslims of Xinjiang, a group that international investigations have found to be subjected to forced labor by the Chinese Communist Party (CCP). The group has also been targeted for persecution by the regime.

“Today’s enforcement actions make it clear—the United States will not tolerate forced labor in the goods entering our markets,” Robert Silvers, undersecretary of Homeland Security for Strategy, Policy, and Plans and chair of the Federal Labor Enforcement Task Force. said in a statement.

“The Uyghur Forced Labor Prevention Act is a powerful tool in the fight against forced labor, and we are using it to its full potential. We urge companies to take responsibility, know their supply chains, and act ethically.”

The Xinjiang region is rich in resources, including metallic minerals and arable land. The majority of the companies blacklisted in the latest batch, 23, were in the agricultural sector and produced products, including tomato paste, walnuts, and raisins, sold wholesale.

Other companies dealt with metals. The state-owned Xinjiang Nonferrous Metals Industry Group Co. and its subsidiaries mine, smelt, and process gold, chromium, iron, and other metals. Xinjiang Zhonghe Co. focuses on electronic materials and aluminum alloy products.

These two metal companies are part of the supply chains of Chinese battery companies Gotion and CATL, which lawmakers targeted over the use of forced labor earlier this year. House Select Committee on the CCP Chair John Moolenaar (R-Mich.), House Homeland Security Committee Chair Mark Green (R-Tenn.), and Rep. Carlos Gimenez (R-Fla.) expressed support for the latest DHS action on Nov. 22 but said the United States needed to do more to remove the Chinese regime from the U.S. battery supply chain.

The United States has blacklisted companies in various sectors for the use of forced labor over the past two years.

In October, the DHS blocked a Chinese steel company for the first time. In August, it blacklisted five other foods and metals companies. In June, it blacklisted companies involved in shoe and coal production.

Lawmakers have also raised concerns over cotton goods imported from China, as some 90 percent of China’s cotton production is in Xinjiang, and investigators believe there is a high likelihood of making use of forced labor.

However, many such goods come into the United States via fast fashion sold directly to the consumer. These individual imports are valued under $800 and, therefore, are not subject to stringent customs inspections under the “de minimis” provision.

Earlier this year, lawmakers in both chambers proposed legislation to close what they described as a de minimis loophole exploited by Chinese companies. Still, there was little consensus over methods and implementation.

However, lawmakers in both chambers have recently introduced bills to revoke China’s trade status, which would also revoke its ability to use the de minimis provision.

Other nations have also condemned the CCP’s forced labor practices. On Nov. 21, the European Union adopted a resolution that may see the 27-member bloc implement a ban on products that have benefited from forced labor. Earlier this year, the EU implemented a due diligence law making companies responsible for investigating their supply chains to ensure compliance with forced labor and environmental laws.