Washington Adds 43 Chinese Companies in Xinjiang under Forced Labour Trade Sanction

Washington sanctioned 43 Chinese companies accused of human rights abuses in the western region of Xinjiang

· U.S. expands sanctions: The United States added 43 Chinese companies to the Uyghur Forced Labour Prevention Act (UFLPA) Entity List, significantly expanding restrictions on imports allegedly linked to forced labour in China's Xinjiang region.

· Largest expansion under Trump: The additions are the first under President Donald Trump's second term and increase the UFLPA Entity List from 144 to 187 entities, the highest since the law took effect in 2021.

· Third China-related action in a week: The blacklist expansion marked the third major U.S. action against China announced during the week.

· Purpose of UFLPA: The Uyghur Forced Labour Prevention Act, enacted in 2021, aims to prevent goods allegedly produced through forced labour in Xinjiang Uyghur Autonomous Region from entering the U.S. market.

· Broader sectoral coverage: The newly sanctioned companies operate in sectors including:

o Food processing.

o Cotton and garments.

o Pharmaceuticals.

o Metals.

o Lithium production.

o Gold and copper.

o Aluminium.

o Tomatoes.

o Frozen foods.

o Transport infrastructure.

· U.S. justification: The U.S. State Department said the listed companies were connected to the production or sale of goods allegedly made using forced labour involving Uyghurs and other protected groups under the UFLPA.

· China rejects allegations: China's Ministry of Commerce (MOFCOM) denied the existence of forced labour in Xinjiang and described the U.S. action as a "classic act of economic coercion."

· Strong diplomatic protest: Beijing stated that the sanctions seriously violated the understanding reached during a recent video call between:

o Chinese Vice Premier He Lifeng,

o U.S. Treasury Secretary Scott Bessent, and

o U.S. Trade Representative Jamieson Greer,

where both sides had discussed maintaining stable bilateral economic and trade relations.

· Contradicting bilateral consensus: China argued that imposing new sanctions immediately after the dialogue undermined the consensus reached by the two heads of state.

· Preparation for leaders' meeting: The recent high-level economic discussions formed part of preparations for President Xi Jinping's expected visit to the United States next month.

· Embassy response: The Chinese Embassy in Washington dismissed allegations of forced labour as "nothing but a lie", asserting that Chinese law explicitly prohibits forced labour.

Companies Added to the Entity List

· Notable companies added include:

o Hunan Aihua Group (capacitor manufacturer).

o Chacha Food Co. (snack foods and roasted seeds exporter).

o Xinjiang Tianhongji Technology Co.

o Tefeng Pharmaceutical Co.

o Tianshan Aluminum Group.

o Henan Guorong Electronic Technology Co.

· The U.S. alleged that some companies sourced raw materials, including chemical foil, from Xinjiang.

Enforcement Measures

· Import ban effective: U.S. Customs and Border Protection (CBP) will begin blocking imports from the newly listed companies starting Monday.

· Enforcement record: The Department of Homeland Security (DHS) reported that since the UFLPA entered into force:

o More than 24,300 shipments have been detained or blocked.

o The affected imports are valued at nearly US$1 billion.

· Warning to importers: DHS warned that importers attempting to evade the restrictions or knowingly importing goods made with forced labour could face prosecution.

U.S. Political Position

· Congressional support: Representative John Moolenaar, Chairman of the House Select Committee on China, said the action:

o Strengthens the U.S. economy against products allegedly made with forced labour.

o Signals that the U.S. will not ignore what it describes as China's human rights abuses in Xinjiang.

Broader Context

· Xinjiang demographics: Ethnic minorities, including the predominantly Muslim Uyghur and Kazakh communities, constitute nearly two-thirds of Xinjiang's population of approximately 26 million.

· China's longstanding position: Beijing continues to deny allegations of:

o Mass detention.

o Human rights abuses.

o Forced labour in Xinjiang.

· Part of broader U.S. measures: The blacklist expansion followed other actions during the week, including:

o A ban on imports of new Chinese robots and power inverters on national security and supply-chain grounds.

o Sanctions against Chinese and Hong Kong shipping companies accused of transporting Iranian oil to China.

[ABS News Service/01.08.2026]

Beijing hit back at the White House decision to add 43 Chinese companies to a blacklist that is meant to block imports allegedly made in Xinjiang using forced labour, describing them as a “classic act of economic coercion”.

Friday’s sanctions were the third time this week that Washington announced measures aimed at China.

Enforcing the Uygur Forced Labour Prevention Act (UFLPA), the Department of Homeland Security increased its entity list by 30 per cent to include companies in sectors ranging from food and cotton to pharmaceuticals, metals and lithium production.

The UFLPA was passed by Congress in 2021 to target imports from the Xinjiang Uygur autonomous region in western China and to prevent goods alleged to have been produced through forced labour from entering the US market.

“The newly listed entities are connected to the production and sale of goods made in Xinjiang or with the forced labour of Uygurs and other groups specified in the UFLPA,” said State Department spokesman Tommy Pigott.

He said the sectors covered included gold, copper, transport infrastructure, aluminium, tomatoes, cotton, garments and frozen food.

On Saturday, China’s Ministry of Commerce denied there was any forced labour in Xinjiang and said it would do whatever was necessary to protect the rights and interests of Chinese firms.

The ministry also referred to a recent video call between Vice-Premier He Lifeng, US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, saying the two sides had held “candid, in-depth, and constructive exchanges on maintaining stable bilateral economic and trade relations”.

It added: “Just one day later, the US side introduced egregious measures that harm Chinese interests, severely running counter to the consensus reached by the two heads of state. China strongly condemns and firmly opposes this.”

During the call – part of the preparations for President Xi Jinping’s expected visit to the US next month – China expressed serious concern over the recent economic and trade restrictions imposed by the US, state news agency Xinhua reported.

Beijing has consistently denied allegations of mass detention, human rights abuses and forced labour, predominantly targeting the Uygur population in Xinjiang.

A spokesperson for the Chinese embassy in Washington said the forced labour allegations were “nothing but a lie”.

“Chinese law explicitly prohibits forced labour,” the spokesperson said. “China firmly opposes the United States using the so-called ‘forced labour’ issue to smear China, interfere in China’s internal affairs, and suppress Chinese companies.”

The expanded list included one of China’s largest capacitor manufacturers, Hunan Aihua Group, with a US Federal Register notice saying the US government believed the company sourced chemical foil and other materials from the region.

Another notable addition was Chacha Food Co, whose products are exported to close to 50 countries and regions and which mainly produces snack foods such as nuts and roasted seeds.

Others listed include Xinjiang Tianhongji Technology Co, Tefeng Pharmaceutical Co, Tianshan Aluminum Group and Henan Guorong Electronic Technology Co.

US Customs and Border Protection will begin blocking imports from these companies on Monday.

They were the first additions to the list made during Donald Trump’s second term in office and increased the number of entities sanctioned from 144 to 187 – the highest total since the act became law in 2021.

The Department of Homeland Security (DHS) said that more than 24,300 shipments with a total value of almost US$1 billion had been blocked since the act came into force.

“Today’s action by the Trump administration strengthens America’s economy against products made with slave labour and sends a message to the Chinese Communist Party that we will not look the other way on its genocide and human rights abuses,” said John Moolenaar, the chairman of the select committee on China.

Ethnic minorities make up close to two-thirds of Xinjiang’s nearly 26 million people, which include the mostly Muslim Uygur and Kazakh groups.

“Importers should know that those who attempt to circumvent today’s action and knowingly import goods produced with forced labour will be prosecuted to the fullest extent of the law,” said Aris Kourkoumelis, the DHS assistant secretary for trade and economic security.

Friday’s list capped off a week of measures targeting Chinese firms.

Earlier this week, the US government announced bans on imports of new Chinese robots and power inverters, citing both national security and supply chain vulnerabilities.

The White House also sanctioned a group of mainland Chinese and Hong Kong shipping companies over the alleged transport of Iranian oil to China.