US Senate Passes Bill to Ban All Products from China's Xinjiang, Genocide Enacted on Muslims

·      HOR and White House OK Required for Enacting Law

·      Uyghur Forced Labor Prevention Act

The U.S. Senate passed legislation on Wednesday to ban the import of products from China's Xinjiang region, the latest effort in Washington to punish Beijing for what U.S. officials say is an ongoing genocide against Uyghurs and other Muslim groups.

The Uyghur Forced Labor Prevention Act would create a "rebuttable presumption" assuming goods manufactured in Xinjiang are made with forced labor and therefore banned under the 1930 Tariff Act, unless otherwise certified by U.S. authorities.

Passed by unanimous consent, the bipartisan measure would shift the burden of proof to importers. The current rule bans goods if there is reasonable evidence of forced labor.

The bill must also pass the House of Representatives before it can be sent to the White House for President Joe Biden to sign into law. It was not immediately clear when that might take place.

Republican Senator Marco Rubio, who introduced the legislation with Democrat Jeff Merkley, called on the House to act quickly.

"We will not turn a blind eye to the CCP's ongoing crimes against humanity, and we will not allow corporations a free pass to profit from those horrific abuses," Rubio said in a statement.

"No American corporation should profit from these abuses. No American consumers should be inadvertently purchasing products from slave labor," Merkley said.

Democratic and Republican aides said they expected the measure would get strong support in the House, noting the House approved a similar measure nearly unanimously last year.

The bill would go beyond steps already taken to secure U.S. supply chains in the face of allegations of rights abuses in China, including existing bans on Xinjiang tomatoes, cotton and some solar products.

The Biden administration has increased sanctions, and on Tuesday issued an advisory warning businesses they could be in violation of U.S. law if operations are linked even indirectly to surveillance networks in Xinjiang.

Rights groups, researchers, former residents and some Western lawmakers and officials say Xinjiang authorities have facilitated forced labor by detaining around a million Uyghurs and other primarily Muslim minorities since 2016.

USTR Joins Other Federal Agencies in Issuing Updated Xinjiang Supply Chain Business Advisory

The Office of the United States Trade Representative (USTR) on 13 July, 2021 joined the U.S. Departments of State, Treasury, Commerce, Homeland Security, and Labor in issuing an updated advisory for U.S. businesses whose supply chains run through Xinjiang, China, where the government of the People’s Republic of China (PRC) and associated enterprises continue to subject Uyghurs and other ethnic and religious minorities to forced labor.

The advisory calls urgent attention to U.S. businesses’ supply chain risks and identifies serious investing and sourcing considerations for businesses and individuals with exposure to entities engaged in forced labor and other human rights abuses linked to Xinjiang.  The advisory also describes U.S. government actions taken to date to counter the use of forced labor in Xinjiang and to prohibit the importation of goods produced in whole or in part with forced labor or convict labor.

“Today’s action demonstrates the Biden-Harris Administration’s commitment to ending forced labor around the world, especially in global supply chains,” said Ambassador Katherine Tai. “Whether through the World Trade Organization negotiations on fishing subsidies and the use of forced labor on fishing vessels, or calling out state-sponsored forced labor, our worker-centered trade policy will champion workers’ rights and address unfair competition, especially when it is based on human exploitation.

“I want to commend our allies for sending a clear sign that there is no place for forced labor in a fair, rules-based international trading system. This includes Canada and Mexico, who have committed to ban the import of goods made with forced labor through the U.S.-Mexico-Canada Agreement.  The European Union also shares our concerns and today issued its own business guidance on how to help counter forced labor in global supply chains.”

Globally, the International Labor Organization estimates that there are 25 million workers, adults and children, in forced labor on any given day. According to the U.S. Departments of State and Labor, several studies have documented more than one million Uyghurs, ethnic Kazakhs, and other Muslim minorities have been unjustly imprisoned in internment camps within the Xinjiang Uyghur Autonomous Region.  These studies also show that at least one hundred thousand workers have been subjected to forced labor in factories in industrial areas where the camps are located, or have been transferred out of Xinjiang to factories in other parts of China.

G7 Leaders meeting at Cornwall, England, recently tasked the G7 Trade Ministers to identify areas for strengthened cooperation and collective efforts towards eradicating all forms of forced labor in global supply chains, ahead of the G7 Trade Ministers' meeting in October 2021.  The United States will continue to play a leadership role in eradicating forced labor, including in Xinjiang, and pursue a trade agenda that protects workers from abuse and exploitation. 

Updated Xinjiang Supply Chain Business Advisory

On July 13, 2021, the U.S. Department of State, alongside the U.S. Department of the Treasury, the U.S. Department of Commerce, the U.S. Department of Homeland Security, the Office of the U.S. Trade Representative, and the U.S. Department of Labor issued an updated Xinjiang Supply Chain Business Advisory to highlight the heightened risks for businesses with supply chain and investment links to Xinjiang, given the entities complicit in forced labor and other human rights abuses there and throughout China. This updates the original Xinjiang Supply Chain Business Advisory issued by U.S. government agencies on July 1, 2020.

The People’s Republic of China (PRC) government continues its horrific abuses in the Xinjiang Uyghur Autonomous Region (Xinjiang) and elsewhere in China, targeting Uyghurs, ethnic Kazakhs, and ethnic Kyrgyz who are predominantly Muslim, and members of other ethnic and religious minority groups.  These abuses include widespread, state-sponsored forced labor and intrusive surveillance, forced population control measures and separation of children from families, mass detention, and other human rights abuses amidst ongoing genocide and crimes against humanity.  Given the severity and extent of these abuses, 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.

The updated advisory highlights:

·         Information related to widespread, state-sponsored forced labor and intrusive surveillance in and related to Xinjiang;

·         Information related to the various kinds of risks and potential exposure to state-sponsored forced labor and human rights abuses related to Xinjiang;

·         The U.S. Department of State Guidance on Implementing the “UN Guiding Principles on Business and Human Rights” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities;

·         Information for investors in PRC companies linked to surveillance in Xinjiang;

·         Information on due diligence related to banking, financial institutions and other investors;

·         Information from the Office of the U.S. Trade Representative and the U.S. Department of Labor;

·         Updated information about U.S. government actions taken in response to human rights abuses in and in connection to Xinjiang, including but not limited to the issuance of Withhold Release Orders by U.S. Customs and Border Protection, the addition of entities to the U.S. Department of Commerce Entity List, the imposition of economic sanctions by the U.S. Department of the Treasury, the imposition of visa restrictions by the U.S. Department of State, and the addition of goods to the U.S. Department of Labor’s List of Goods Produced by Child Labor or Forced Labor (Annex 1);

·         Information on forced labor in the Xinjiang silicon and polysilicon supply chain and the prevalence of inputs sourced from Xinjiang (Annex 4); and

·         A list of other countries’ regulatory provisions and information on forced labor in supply chains (Annex 7).

<Xinjiang Supply Chain Business Advisory>