Commerce Releases Xinjiang Supply Chain Business Advisory

WASHINGTON, D.C. — The U.S. Department of Commerce, along with the Departments of State, the Treasury, and Homeland Security, recently issued a advisory to highlight risks and considerations for businesses with supply chain exposure to entities engaged in forced labor and other human rights abuses in the Xinjiang Uighur Autonomous Region in the People’s Republic of China (PRC).

“China continues to commit brutal human rights abuses against ethnic minorities from Xinjiang, including operating dystopian surveillance systems and employing the contemptible practice of forced labor,” said Secretary of Commerce Wilbur Ross. “This business advisory highlights the risks U.S. companies, individuals, and other organizations face when dealing with entities involved in these human rights abuses.”

The business advisory follows Department of Commerce Entity List designations of 37 Chinese entities engaged in or enabling human rights abuses in Xinjiang, the most recent of which became effective on June 5. These Entity List actions further restrict access to U.S. goods and technology through the establishment of entity-specific license requirements for the export, re-export and transfer of U.S goods to these designated parties.

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The Chinese Communist Party continues to carry out a campaign of repression in Xinjiang, targeting members of Muslim minority groups.  Specific abuses include mass arbitrary detentions, severe physical abuse, forced labor, and other labor abuses, oppressive surveillance used arbitrarily or unlawfully, religious persecution, and other infringements of the rights of members of those groups in Xinjiang.

In order to mitigate reputational and other risks, businesses, individuals, and other organizations that choose to operate in Xinjiang or engage with entities that use labor from Xinjiang elsewhere in China should be aware of various risks associated with certain types of involvement with entities that commit human rights abuses.

For more information on the Business Advisory, click here.

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