US imposes trade bans on five Chinese firms

International

Washington, 25 June: The Biden administration imposed trade bans on five Chinese companies over forced labour allegations in Xinjiang, the White House said today, citing the G-7’s recent pledge to clean up the global supply chain.

It ordered a ban on US imports of a key solar panel material from Chinese-based Hoshine Silicon Industry Co and separately restricted exports to Hoshine, three other Chinese firms and the paramilitary Xinjiang Production and Construction Corps (XPCC), saying they were involved with the forced labour of Uyghurs and other Muslim minority groups in the Chinese province.

The US Department of Labour also added polysilicon produced with forced labour in China to its ‘List of Goods Produced by Child Labour or Forced Labour’.

“These actions demonstrate our commitment to imposing additional costs on the People’s Republic of China (PRC) for engaging in cruel and inhumane forced labour practices and ensuring that Beijing plays by the rules of fair trade as part of the rules-based international order,” the White House said.

Beijing has dismissed accusations of genocide and forced labour in Xinjiang as lies.

Chinese Foreign Ministry Spokesman Zhao Lijian, reacting to earlier reports of the US action, said today China would take ‘all necessary measures’ to protect its companies’ rights and interests.

The three other companies added to the US economic blacklist were Xinjiang Daqo New Energy Co, a unit of Daqo New Energy Corp; Xinjiang East Hope Nonferrous Metals Co, a subsidiary of Shanghai-based manufacturing giant East Hope Group; and Xinjiang GCL New Energy Material Co, part of GCL New Energy Holdings Ltd.

At least some of the companies are major manufacturers of monocrystalline silicon and polysilicon used in solar panel production.

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