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US sounds warning to American businesses on China forced labour as shipment denials surge
- First half of 2023 sees US$587 million worth of goods denied entry to the US, more than doubling the figure for the second half of 2022
- Data released as US report alleges China sought ‘coerced repatriation and internment of religious and ethnic minorities living abroad’
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Igor Patrickin Washington
The US State Department reiterated a warning to American businesses about the risks of violating a new law that seeks to combat alleged forced labour in China, including new data showing a surge in shipments stopped at the US border.
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US customs officials began enforcing the Uygur Forced Labour Prevention Act in June last year. The legislation drew strong bipartisan support and was signed into law by US President Joe Biden in 2021. Over the following year, shipment denials steadily rose.
Drawing on new findings from “both governmental and non-governmental sources”, the State Department released an addendum highlighting the risks for companies that source goods either directly from Xinjiang Uygur autonomous region or from other areas in China where forced labour from Xinjiang is purportedly involved.
Some US$587 million worth of goods were denied entry in the first half of 2023, up from US$206 million in the second half of 2022, according to the report.
State-backed tourism in Xinjiang cities ringed by camps
The biggest surge in denials was in the apparel-and-footwear category, representing about three quarters of the first-half 2023 total.
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