Washington, D.C.: In a significant move to combat forced labor, the United States has imposed a ban on two major Chinese companies, marking the first time a steel manufacturer and a sweetener producer have been targeted under the Uyghur Forced Labor Prevention Act (UFLPA). This action highlights the US government’s growing focus on ethical labor practices and its efforts to prevent forced labor-linked products from entering the American market.

On October 2, the Department of Homeland Security (DHS) added Xinjiang Bayi Iron and Steel Co., Ltd. and Changzhou Guanghui Food Ingredients Co., Ltd. to its list of companies banned from exporting goods to the US. The move is part of a broader effort to shield US supply chains from products tied to forced labor, particularly from China’s Xinjiang region, where over one million Uyghurs and other Muslim minorities have been detained in mass internment camps.

Robert Silvers, DHS Undersecretary for Policy, emphasized the importance of holding industries accountable. “Today’s actions reaffirm our commitment to eliminating forced labor from U.S. supply chains and upholding our values of human rights for all. No sector is off-limits,” Silvers stated, stressing that the federal task force will continue to scrutinize companies profiting from exploitation.

Targeted Companies
Xinjiang Bayi Iron and Steel Co., a subsidiary of the world’s largest steel producer, China Baowu Steel Group, is accused of exploiting ethnic minorities through forced labor programs. Changzhou Guanghui Food Ingredients, a manufacturer of artificial sweeteners, has also been implicated for sourcing raw materials from Xinjiang, raising concerns about the involvement of forced labor in its supply chain.

These are the first companies in the steel and food sectors to be included in the UFLPA’s entity list, expanding the scope of enforcement beyond industries traditionally associated with forced labor, such as electronics, footwear, and seafood. With the latest additions, a total of 75 Chinese companies have been sanctioned under the UFLPA, a law passed in 2021 to address human rights abuses in Xinjiang.

A Broader Campaign Against Forced Labor
Both the Biden and Trump administrations have described China’s actions in Xinjiang as "genocide," citing widespread abuses such as forced labor, sterilizations, and political indoctrination. Human rights groups and governments worldwide have raised alarms over China's treatment of the Uyghur population, and the US has been at the forefront of efforts to disrupt supply chains linked to these abuses.

Senator James Risch, a prominent critic of China’s human rights record, praised the DHS decision on social media, emphasizing the importance of holding China accountable. Advocacy groups like the Uyghur American Association also applauded the move, calling it a crucial step in addressing the exploitation of Uyghurs.

International Scrutiny and Ongoing Tensions
The United Nations and human rights organizations have repeatedly condemned China’s policies in Xinjiang, with the UN Human Rights Office stating that these practices could amount to “crimes against humanity.” Despite growing global pressure, Beijing continues to deny these allegations, asserting that its policies are necessary counter-terrorism measures.

China has retaliated against foreign companies that seek to distance themselves from Xinjiang-linked products. The PVH Group, owner of brands like Calvin Klein and Tommy Hilfiger, became a target of an investigation by China’s Ministry of Commerce after the company reduced its reliance on Xinjiang cotton. This move underscores the deepening trade tensions between the US and China over human rights and supply chain ethics.

Global Implications
The US government's decision to target companies in sectors as varied as steel and sweeteners signals that no industry is exempt from scrutiny when it comes to forced labor. Businesses around the world are facing increasing pressure to ensure their operations are transparent and free from labor abuses, especially when dealing with regions like Xinjiang.

The ban on Xinjiang Bayi Iron and Steel and Changzhou Guanghui Food Ingredients is part of a broader campaign to address forced labor globally, with Xinjiang remaining a focal point of US efforts. As the push for ethical labor practices intensifies, companies must ensure they meet international standards, or risk facing substantial consequences.