On Tuesday, July 13, 2021, a 36 page Joint Xinjiang Supply Chain Advisory was published by the Department of State, Department of Treasury, Department of Commerce, Department of Homeland Security, United States Trade Representatives and the Department of Labor.
The U.S. Government is continuing its efforts to persuade businesses to exit supply chains connected to China’s Xinjiang Uyghur Autonomous Region (XUAR) due to the forced labor in the region. This message comes as a follow up to their first joint statement in July of 2020.
The advisory warns that “businesses and individuals that do not exit supply chains, ventures, and/or investments connected to Xinjiang could run a high risk of violating U.S. Law” which could result in criminal or civil enforcement actions.
The advisory identifies the following industries as being at risk:
- Cell Phones
- Cleaning Supplies
- Cotton, Cotton Yarn, Cotton Fabric, Ginning, Spinning Mills, and Cotton Products
- Electronics Assembly
- Extractives (including coal, copper, hydrocarbons, oil, uranium, and zinc)
- Fake hair and human hair wigs, hair accessories
- Food processing factories
- Hospitality Services
- Metallurgical Grade Silicon
- Printing Products
- Renewable Energy
- Textiles (including such products as apparel, bedding, carpets, wool, viscose
As a result, the advisory urges businesses, “to undertake heightened human rights due diligence to identify potential supply chain links to entities operating in Xinjiang, linked to Xinjiang, or utilizing Uyghur or other ethnic and Muslim minority laborers from Xinjiang.” We encourage all clients to take all measures necessary to map your supply chains to make sure you are not:
- Sourcing labor or goods from Xinjiang
- Sourcing labor or goods from China entities connected to the use of forced labor or individuals from Xinjiang
- Sourcing goods from entities outside of China that source inputs or labor from Xinjiang
- Supplying U.S. Origin commodities, software, and technology to entities engaged in surveillance and forced labor practices
- Assisting or investing in the development of surveillance tools for the Chinese Government in Xinjiang, including tools related to genetic collection and analysis
- Aiding in the construction and operation of internment facilities used to detain Uyghurs and members of other Muslim minority groups, and/or in the construction and operation of manufacturing facilities that are in close proximity to camps and reportedly operated by businesses accepting subsidies from China to subject minority groups to forced labor
If you have any questions, please contact your Noatum Logistics representative.