Biden Administration Targets Firms Linked to Forced Labor in China, Disrupting Global Supply Chains

  • by:
  • Source: Wayne Dupree
  • 03/30/2024
An official said the Biden administration would expand a list of firms under import restriction for suspected forced labor in China, putting pressure on certain multinational supply networks.

Laura Murphy, a DHS policy advisor, stated Tuesday that the Uyghur Forced Labor Prevention Act Entity List would include many more organizations. The list includes corporations and governmental entities the U.S. believes utilize Xinjiang forced labor.

“We prioritize entity list enhancement and expansion. Murphy told Philadelphia trade experts at a panel discussion that many more businesses would arrive in the coming months.

The UFLPA has restricted most imports from Xinjiang, home to the Uyghur people and other minority groups forced into compulsory labor, since June 2022. China rejects such assertions and views Xinjiang examination as intrusion into its domestic affairs.

UFLPA enforcement has halted $2.9 billion in shipments, principally electronics and textiles, at the border, although some importers have been able to negotiate release. Both parties' lawmakers want to escalate the crackdown.

The UFLPA restriction applies to all commodities, but the entity list limits access to some corporations, even if they are part of another company's completed product. There are 30 firms on the list. Murphy did not specify the number of additions.

Administration officials have regularly advised corporations to check their supplier networks or face issues. Volkswagen reported hundreds of Bentley, Porsche, and Audi cars seized at U.S. ports last month due to a supplier on the entity list.

The Biden administration appointed Murphy as an adviser five months ago, suggesting it may take strong actions. Murphy has covered corporate supply networks in solar panels and vehicle manufacture while on leave as Sheffield Hallam University's professor of human rights and modern slavery.

She advised businesses to immediately eliminate forced labor from their supply networks. We will list firms as entities. You should not wait while we work, she remarked. “You can get ahead of that.”





 

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