On July 13, 2021, several US government agencies issued an updated advisory on the risks of doing business with entities in the Xinjiang Uyghur Autonomous Region, in light of growing evidence that the government of the People’s Republic of China (PRC) continues to engage in serious human rights abuses including forced labor, genocide and imprisonment, against the Uyghurs and other ethnic and religious minority groups in the region. The US Departments of State, Commerce, Homeland Security, Labor, Treasury and the Office of the US Trade Representative issued the update to outline the risks to consider when assessing possible partnerships with companies operating in Xinjiang, in order to prevent possible supply chain exposures to businesses engaged in human rights abuses.
The advisory warns against four primary types of supply chain exposure: (1) supporting companies that assist in the development of surveillance tools used by the PRC in Xinjiang; (2) sourcing labor from Xinjiang directly or indirectly from companies elsewhere in China that benefit from forced labor in Xinjiang; (3) supplying US software, technology and other commodities to entities engaged in surveillance and force labor practices, and; (4) supporting the construction and operation of facilities used to detain Uyghurs and other minorities in Xinjiang. The advisory, which was originally published in July of 2020, also encourages businesses and individuals to engage in heightened due diligence and look for warning signs to determine when it is appropriate to end business relationships, and how to prevent or mitigate any adverse impacts.
Department of Treasury Press Release | Xinjiang Supply Chain Business Advisory (July 2021)