US bans imports from 43 firms citing Xinjiang human rights concerns

The United States on Friday, July 31, added 43 companies to a trade blacklist over alleged human rights abuses involving Uyghurs and other minority groups in China’s Xinjiang region, according to a government posting.

The firms were placed on the Uyghur Forced Labour Prevention Act (UFLPA) Entity List, which restricts the import of goods linked to what Washington has determined are human rights abuses and an ongoing genocide in Xinjiang, according to Reuters.

The latest additions span multiple sectors, including pharmaceuticals, metals, cotton, food and lithium production. Among them is Hunan Aihua Group (603989.SS), one of China’s largest capacitor manufacturers. The U.S. Department of Homeland Security (DHS) said the company was added because it is believed to source chemical foil and other materials from Xinjiang.

The action marks the first time companies have been added to the list under the Trump administration and increases the total number of listed entities from 144 to 187. It also represents the largest single expansion of the list since the law was enacted in December 2021.

Companies designated under the UFLPA are accused of sourcing materials from Xinjiang or working with authorities there to recruit and transfer Uyghurs and other persecuted groups out of the region.

“Today’s action by the Trump administration strengthens America’s economy against products made with slave labour and sends a message to the Chinese Communist Party that we will not look the other way on its genocide and human rights abuses,” Congressman John Moolenaar, chair of the U.S. House of Representatives Select Committee on China, said in a statement.

Washington has long alleged that Chinese authorities operate internment camps for Uyghurs and other religious and ethnic minorities in Xinjiang. Beijing has repeatedly denied any abuses.

"The allegation that there is “forced labour” in Xinjiang is nothing but a lie," a spokesperson for the Chinese embassy in Washington said in a statement on Friday. "Chinese law explicitly prohibits forced labour. Workers of all ethnic groups in Xinjiang enjoy, in accordance with law, the rights to choose their occupations of their own free will, receive equal treatment in employment, and obtain remuneration for their work."

Other companies added to the list include Chacha Food Co (002557.SZ), whose products are exported to nearly 50 countries and regions, as well as Xinjiang Tianhongji Technology Co, Tefeng Pharmaceutical Co, Tianshan Aluminum Group and Henan Guorong Electronic Technology Co. The companies could not immediately be reached for comment.

Hunan Aihua Group, which supplies consumer electronics, industrial, automotive and renewable energy markets, also did not immediately respond to a request for comment.

Since the UFLPA enforcement regime began, U.S. Customs and Border Protection has blocked more than 24,300 shipments tied to suspected forced labour, with a combined value of nearly $1 billion, according to DHS.

By Tamilla Hasanova