US warns companies on Xinjiang business, urges exit

Joint statement warns of “growing evidence” of forced labour and challenges of due diligence.

The United States has warned of heightened risks for companies doing business in Xinjiang, where it accuses Beijing of an “ongoing genocide” and “crimes against humanity” against the Uighurs and other mainly Muslim ethnic minorities, warning firms could be liable to prosecution under US law. In an updated business advisory issued on Tuesday, the US said there was “growing evidence” of forced labour, as well as other human rights abuses and “intrusive” surveillance. “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 State Department said in a joint statement with the Treasury, Department of Commerce, Department of Homeland Security. The Department of Labor and the Office of the US Trade Representative also signed onto the advisory for the first time.