U.S. Bans Products from 26 China-Based Textile Companies over Forced Labor Concerns
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- Published: Friday, 17 May 2024 17:12
In a significant move aimed at combating forced labor practices, the U.S. Department of Homeland Security (DHS) has expanded its efforts by adding 26 China-based textile companies to the Uyghur Forced Labor Prevention Act (UFLPA) entity list. Effective immediately, goods produced by these entities will face restrictions, barring their entry into the United States.
The newly added entities comprise cotton traders and warehouse facilities primarily located outside the Xinjiang Uygur Autonomous Region (XUAR). This decision comes as part of the U.S. government's commitment to eradicating forced labor from its supply chain and holding perpetrators accountable for human rights violations, particularly against Uyghurs and other religious and ethnic minority groups in the XUAR.
Forced Labor Enforcement Task Force (FLETF), chaired by DHS, spearheaded this action, expanding the entity list from its previous count of 10 textile companies. According to the DHS release, 21 of the newly listed entities are involved in sourcing and selling cotton from the XUAR on the wholesale market, while five others also procure cotton from the region.
Secretary of Homeland Security Alejandro N. Mayorkas emphasized the department's zero-tolerance policy towards forced labor, asserting, "The Department of Homeland Security will not tolerate forced labor in our nation’s supply chains."
Since the enactment of the UFLPA in December 2021, FLETF has added a total of 65 entities spanning various sectors, including apparel, agriculture, polysilicon, plastics, chemicals, batteries, and others, to the entity list. This decision aligns with DHS' Textile Enforcement Plan, which prioritizes the scrutiny of entities in the textile sector for potential inclusion on the UFLPA entity list.
The move follows the implementation of Customs and Border Protection Withhold Release Order (WRO) on cotton from the XUAR since January 2021. Additionally, cotton and cotton products were designated as a high priority sector under the Strategy to Prevent Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China, issued in June 2022.
While applauded as a positive step towards strengthening enforcement against forced labor, the expanded Entity List drew criticism from the National Council of Textile Organizations (NCTO) president and chief executive officer Kim Glas. She urged for inclusion of more companies outside China that may be involved in trading goods produced with forced labor.
Glas highlighted the prevalence of Xinjiang cotton in Chinese textile products, permeating global supply chains and affecting the competitiveness of industries worldwide. The detrimental impact of forced labor practices extends beyond cotton to encompass man-made fiber products, leading to closures and layoffs in American textile plants.
The latest measures underscore the ongoing efforts by the U.S. government to combat forced labor and uphold human rights standards in global supply chains, signaling a commitment to ensuring ethical sourcing practices and promoting transparency in trade relations.