US Raises Violation Risk Alert For Xinjiang-Related Business

Illustration of Xinjiang City, China (Wikimedia Commons/Anagoria)

JAKARTA - The United States (US) government on Tuesday reiterated its warning in the business sector regarding the increased risks of owning supply chains and investment links to China's Xinjiang region, citing forced labor and human rights abuses there.

"Given the severity and extent of these violations, businesses, and individuals who do not exit supply chains, businesses, and/or investments connected to Xinjiang could be at high risk of violating US law," the State Department said in a statement.

In a sign of broader U.S. government coordination on this issue, the Department of Labor and Office of the U.S. Trade Representative joined forces in issuing the updated advice, which was first released on July 1, 2020, under the Donald Trump administration by the Departments of State, Commerce, Homeland Security, and Finance.

The Treasury Department declined to comment on the Financial Times report, which said the United States would impose more sanctions this week in response to China's crackdown in Xinjiang and Hong Kong.

A source familiar with the matter said they heard the government was preparing new sanctions but did not have details on the timing. Another source said the government could announce similar business advice covering Hong Kong as soon as Friday, based on deteriorating conditions there.

Uighur Muslim photo illustration. (Source: Commons Wikimedia)

The new warning announced yesterday reinforces previous warnings to US companies about the risk of violating US law if their business is linked, even if indirectly, to the "Chinese Government's extensive and growing surveillance network in Xinjiang. The warning also applies to financial support from venture capital and private equity firms.

Additionally, the warning also summarizes the previously announced actions of President Joe Biden's Administration to address allegations of forced labor and rights abuses in Xinjiang, including U.S. Customs and Border Protection bans on some imports of solar products, as well as sanctions against Xinjiang companies and entities.

Last Friday, the US government added 14 Chinese companies and other entities to its economic blacklist for alleged human rights abuses and high-tech surveillance in Xinjiang.

The new warning says the Chinese government continues its horrific abuses in Xinjiang and elsewhere, targeting Uighurs, ethnic Kazakhs, and Muslim-majority Kyrgyzstan, as well as members of other minority ethnic and religious groups.

China denies any wrongdoing and says it has set up vocational training centers in Xinjiang to tackle religious extremism.

To note, President Joe Biden has sought help from US allies to hold Beijing accountable for human rights abuses, as well as what the White House says are increasingly coercive foreign and trade policies.

State Department spokesman Ned Price said at a regular news briefing Washington would continue to hold Hong Kong authorities accountable for the erosion of the rule of law, imposing "fees and sanctions" on Chinese officials responsible for human rights abuses, including forced labor.

He said risks to the rule of law, previously limited to mainland China, were now of increasing concern to Hong Kong but did not specify any new measures.