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The U.S. has added two new Chinese companies to a Xinjiang trade blacklist over forced labor accusations. The Department of Homeland Security announced on Wednesday that a Chinese steel manufacturer and an artificial sweetener maker would be placed on the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. The list, which now includes 75 entities, bans imports that are made in full or in part in China's Xinjiang Uyghur Region, based on the assumption that forced labor of China's Uyghurs and other ethnic minorities was used in their manufacturing. The European Union has endorsed new laws that will ban products made using forced labor and require big firms to preform human rights and environmental audits on overseas suppliers. Taiwan is also reportedly considering its own bill on forced labor, similar to the UFLPA.
Persons: Robert Silvers, Silvers, Tommy Hilfiger, Calvin Klein, PVH, Lockheed Martin, — CNBC's Evelyn Cheng Organizations: U.S, Beijing, The Department of Homeland Security, Uyghur, Labor, Department of Homeland Security, U.S ., China's Ministry of Commerce, CNBC, Raytheon, The European Union Locations: Xinjiang, China's Xinjiang Uyghur, U.S, China, Beijing, Taiwan
Shein logistics software is in beta testing with select supply chain customers, according to a person familiar with its plans. "Shein's software could provide unprecedented access to sensitive supply chain data, which the Chinese government could seize under its laws. This exposure poses a direct threat to U.S. supply chain integrity, making it vulnerable to exploitation and manipulation." Even with a headquarters based in Singapore, company supply chain data could be subject to seizure by the Chinese. Shein's fast rise to dominance Shein's dominance lies in the company's hyper-flexible supply chain, according to a recent report from supply chain intelligence firm Zero100.
Persons: Jade Gao, Shein, cybersecurity, Lee Kair, Kair, Dewardric McNeal, McNeal, Ram Ben Tzion, Ben Tzion, Department of Homeland Security's, Shein's, Srini Cherukuri, Chris Xu's, Zero100, Eric Fullerton, Project44 Organizations: Shein, Afp, Getty, Transportation Security Administration, U.S, Authentic Holdings, Simon Property Group, Longview Global, Obama administration's Department of Defense, CNBC, Standards Organization, Secretariat, IAF, Microsoft U.S, EU, Social, International, Uyghur Forced Labor, Department of Homeland, Border Patrol, New York, ITS Logistics, Logistics Locations: Guangzhou, China's Guangdong, Jade, China, U.S, Exiger, Shein, Asia, Singapore, Frankfurt, Germany, Xinjiang Province, Customs, York, United States
German automaker BMW imported at least 8,000 Mini Cooper vehicles into the United States with electronic components from a banned Chinese supplier, a U.S. Senate report released on Monday said. A report by Senate Finance Committee Chairman Ron Wyden's staff said BMW imported 8,000 Mini Coopers with parts from a Chinese supplier banned under a 2021 law and that BMW continued to import products with the banned parts until at least April. BMW Group said in an email it had "taken steps to halt the importation of affected products." The report found that Bourns Inc, a California-based auto supplier, had sourced components from Sichuan Jingweida Technology Group (JWD). That Chinese company was added to the UFLPA Entity List in December, which means its products are presumed to be made with forced labor.
Persons: Ron Wyden's, Wyden Organizations: BMW, U.S, Senate, Senate Finance, Coopers, BMW Group, Labor, Customs and Border Protection, Inc, Sichuan Jingweida Technology Locations: Leipzig, Germany, United States, China's Xinjiang, China, California, Sichuan
Temu, the controversial Chinese e-commerce giant looking to take on Amazon , is returning to the big game on Sunday with a Super Bowl ad that lawmakers are calling on Paramount Global and CBS not to run. The multi-million dollar investment put Temu on the map and by the end of 2023, it was the No. On Wednesday, 11 Republican lawmakers sent a letter to the CEOs of CBS, which is airing the Super Bowl, and parent company Paramount urging them not to run the advertisement. "Specifically, Temu 'does not have any system to ensure compliance with the Uyghur Forced Labor Prevention Act (UFLPA). Allowing Temu's commercial to air "would be a touchdown for the Chinese Communist Party against the home team," the letter stated.
Persons: haven't, Temu, Carol Miller, Byron Donalds, Jim Banks, Nicole Malliotakis, Christopher Smith, Pete Stauber, Ronny Jackson, Michelle Steel, Beth Van Duyne, James Baird, Mike Carey Organizations: Paramount Global, CBS, PDD Holdings, U.S, Republican, Paramount, Bowl, Chinese Community Party, Uyghur, Labor, Chinese Communist Party, Reps, Ohio . Paramount Locations: U.S, United States, Ohio
HANOI/KUALA LUMPUR, Nov 22 (Reuters) - Electronics worth a year-high $74 million, such as solar panels and microchips mostly from Malaysia and Vietnam, were denied entry in the United States in September or were checked for components from forced labour in China, official data show. In September alone, $82 million worth of shipments were either refused or were held for checks -- 90% of which were electronics -- a jump from less than $20 million in August. Over two-thirds of rejected or held cargoes came from Malaysia or Vietnam, which are major exporters to the United States of solar panels and semiconductors. Malaysia and Vietnam have had cargoes worth about $320 million each denied or held for checks since the new rules came into force, nearly three times more than China's. Washington has accused China of genocide against the Uyghurs, with rights groups denouncing a widespread use of internment camps and forced labour.
Persons: Francesco Guarascio @fraguarascio, Kim Coghill Organizations: Industry, Uyghur, Labor, Thomson Locations: HANOI, KUALA LUMPUR, Malaysia, Vietnam, United States, China, China's Xinjiang, U.S, Xinjiang, Washington
WASHINGTON, Sept 26 (Reuters) - The United States has added three Chinese companies to the forced labor entity list involving Uyghurs, according to a government posting on Tuesday, as part of an effort to eliminate forced labor practices the U.S. supply chain. The action targets Xinjiang Tianmian Foundation Textile Co, Ltd; Xinjiang Tianshan Wool Textile Co. Ltd, and Xinjiang Zhongtai Group Co. Ltd, according to the post. A 2021 law, the Uyghur Forced Labor Prevention Act Entity List (UFLPA), prohibits U.S. imports that are either produced in Xinjiang or by companies identified on the list, unless the importer can prove the goods were not produced with forced labor. The list identifies entities working with the government of the Xinjiang Uyghur Autonomous Region to recruit and transport Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the region. U.S. officials believe Chinese authorities have established labor camps for Uyghurs and other Muslim minority groups in Xinjiang, China.
Persons: Doina Chiacu, Karen Freifeld, Susan Heavey Organizations: United, Foundation Textile Co, Wool, Co ., Xinjiang Zhongtai, Labor, U.S, Thomson Locations: United States, Xinjiang, Xinjiang Uyghur Autonomous Region, U.S, China, Beijing
More than a year of enforcement of the Uyghur Forced Labor Prevention Act (UFLPA) has already stymied development of solar energy projects as detained panel shipments languish in U.S. warehouses. When shipments are detained, CBP provides the importer with a list of examples of products from previous reviews and the kind of documentation required to prove they are not made with forced labor, CBP told Reuters. "The timing of these changes does not reflect any specific changes in strategy or operations," a CBP spokesperson said in a statement, adding that the list of eight product types was "not exhaustive." In a report to Congress last month on UFLPA enforcement, CBP listed lithium-ion batteries, tires, "and other automobile components" among the "potential risk areas" it was monitoring. The stepped-up focus on automakers follows a study by Britain's Sheffield Hallam University published in December that said nearly every major automaker has exposure to products made with forced labor in Xinjiang.
Persons: Janet Yellen, Mark Schiefelbein, Dan Solomon, Chevalier, Solomon, Britain's, Ron Wyden, Wyden, we've, Tesla, Brandon Daniels, Nichola Groom, David Shepardson, Jan Schwartz, Daniel Leussink, Matthew Lewis Organizations: Reuters, U.S . Customs, Border Protection, Beijing, Uyghur, Labor, U.S . Solar Energy Industries Association, Biden, CBP, Miller, Britain's Sheffield Hallam University, U.S, Senate, Benz, Volkswagen, Friedrichshafen AG, Bosch, General Motors, Honda, Toyota, Continental AG, Thomson Locations: United States, Diaoyutai, Beijing, China, Xinjiang, U.S, Detroit, UFLPA, Los Angeles, Washington, Hamburg, Tokyo
Online retailer Temu relies on its customers to report when products are made with forced labor. Temu prohibits suppliers from using forced labor, but relies on external reporting to enforce that policy. Lawmakers said there is an extremely high risk that Temu's supply chains are contaminated with forced labor. That makes it difficult to know whether the companies are following the Certa Uyghur Forced Labor Prevention Act (UFLPA), which prohibits international imports manufactured by forced labor, particularly in the Xinjiang region of China. The investigation concluded that, "American consumers should know that there is an extremely high risk that Temu's supply chains are contaminated with forced labor."
Persons: , Temu, hasn't Organizations: Temu, Lawmakers, Service, Chinese Communist Party, Customs, Border, Labor Locations: United States, Xinjiang, China, Xinjiang Autonomous Region, American
Shein and Temu sell products that are so cheap the companies avoid paying import tariffs. US lawmakers found that these fast-fashion companies are exempt from tariffs on products under $800. So low, in fact, that the companies don't have to pay tariffs when the products are shipped to the US. Lawmakers highlighted the Certa Uyghur Forced Labor Prevention Act (UFLPA) which prohibits international imports manufactured by forced labor, particularly in the Xinjiang region of China. Temu's code of conduct prohibits suppliers from using forced labor but does not prohibit them from sourcing products based on region.
Persons: , Temu, Shein Organizations: Service, Chinese Communist Party, Customs, Labor Locations: China, United States, Xinjiang
WASHINGTON — A House committee exploring economic competition between the U.S. and China on Thursday released a damning report connecting retail giants Shein and Temu to a disproportionate number of import violations. Lawmakers argue the tariff violations give Temu and Shein unfair advantages over U.S. retailers. Both companies have faced allegations of human rights abuses: Shein for alleged forced labor in its supplier factories in the Uyghur region and Temu for allegedly failing to develop compliance with the Uyghur Forced Labor Prevention Act, the committee reported. Temu and Shein did not immediately respond to a request for comment on the report. Temu has previously said it is "not the importer of record with respect to goods shipped to the United States," and Shein has denied allegations of forced labor.
Persons: WASHINGTON, Shein, Mike Gallagher, Temu Organizations: U.S, Chinese Communist Party, Nike, Adidas, Uyghur, Labor, U.S . Customs, Wisconsin Republican, House CCP Committee Locations: China, U.S, Wisconsin, United States
June 9 (Reuters) - The United States on Friday banned imports from China-based printer maker Ninestar Corp (002180.SZ) and a chemical company over alleged human rights abuses in China, according to a post for the Federal Register. DHS said the actions were taken as part of the U.S. Uyghur Forced Labor Protection Act (UFLPA), which was signed into law in December 2021. The act prohibits imports into the U.S. that are either produced in Xinjiang or by companies identified on an UFLPA Entity List, unless the importer can prove the goods were not produced with forced labor. “The Forced Labor Enforcement Task Force will continue to hold companies accountable for perpetuating human rights violations in Xinjiang,” DHS Under Secretary for Policy Robert Silvers, who chairs the task force, said in a statement. Reporting by Karen Freifeld; Editing by Doina Chiacu, Sharon Singleton and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.
Persons: Ninestar, Robert Silvers, Karen Freifeld, Doina Chiacu, Sharon Singleton, Jonathan Oatis Organizations: Ninestar, Federal Register, Zhongtai Chemical Co, U.S . Department of Homeland Security, DHS, Uyghur, Labor, Task Force, Thomson Locations: United States, China, China's, Xinjiang, U.S, Zhuhai
A shopper carries a bag of Nike merchandise along the Magnificent Mile shopping district on December 21, 2022 in Chicago, Illinois. WASHINGTON — A House committee examining the U.S. government's economic relationship with China is asking some of the world's largest clothing companies for information about the use of forced labor during production — a potential violation of U.S. trade law. Lawmakers asked retailers Temu, Shein, Nike and Adidas North America about the use of materials and labor sourced from the Xinjiang Uyghur Autonomous region of China, according to letters sent to company leaders on Tuesday. Such practices would constitute violations of the 2021 Uyghur Forced Labor Prevention Act, according to the lawmakers. The inquiries also follow a March hearing of the committee that included an expert assessment finding that U.S. companies finance "state-sponsored forced labor programs in the Uyghur region."
Reuters GraphicsMany U.S. importers are still sanguine, but their supply chains could still be disrupted as Vietnam's apparel makers depend on China for about half of their input materials, according to the country's industry association. XINJIANG LINKSWhile the halted shipments represent a tiny portion of the $27 billion worth of garments and footwear Vietnam exported to the U.S. last year, compliance risks may lead to more painful adjustments for Vietnam. That, in turn, will hit U.S. consumers as Vietnam is their main source of cotton apparel, according to the U.S. Department of Commerce. However Nike has significantly reduced its output of apparel and footwear in Vietnam despite the country remaining its main manufacturing hub, according to its latest annual report updated to May 2022. Two officials from U.S. footwear and apparel industry trade associations said the new rules have had no major impact so far on Vietnam and blamed recent job cuts on lower global demand.
Reuters GraphicsMany U.S. importers are still sanguine, but their supply chains could still be disrupted as Vietnam's apparel makers depend on China for about half of their input materials, according to the country's industry association. XINJIANG LINKSWhile the halted shipments represent a tiny portion of the $27 billion worth of garments and footwear Vietnam exported to the U.S. last year, compliance risks may lead to more painful adjustments for Vietnam. That, in turn, will hit U.S. consumers as Vietnam is their main source of cotton apparel, according to the U.S. Department of Commerce. However Nike has significantly reduced its output of apparel and footwear in Vietnam despite the country remaining its main manufacturing hub, according to its latest annual report updated to May 2022. Two officials from U.S. footwear and apparel industry trade associations said the new rules have had no major impact so far on Vietnam and blamed recent job cuts on lower global demand.
Inside these boxes: Approximately $20 million worth of detained solar panels by U.S. Customs & Border Protection over suspected ties to forced labor. Shipments coming directly from China represented about $80 million worth of goods, while Malaysia accounted for $461 million and Vietnam accounted for $370 million. "UFLPA allows us to presume [goods] were produced with forced labor, and therefore they'd be excluded from the United States," said Fox. "The cotton commodity coming out of the Xinjiang region has typically been tied to forced labor," Fox told CNBC. The companies then had 30 days to come back to CBP and prove that the items were produced without forced labor.
March 14 (Reuters) - U.S. customs officials have released more than a third of the electronic equipment, including solar panels, detained since last year under a new law meant to weed out products made with forced labor, according to data released on Tuesday. According to the data, CBP has released 552 electronics shipments worth $345 million out of a total of 1,627 industry shipments valued at $841 million that were held for examination. While it was unknown what percentage of those shipments are solar equipment, Reuters reported last year that as of late October, CBP had detained more than 1,000 shipments of solar energy equipment. Just 17 electronics shipments, worth $7 million, have been denied entry into the U.S. market. The data also shows detainments peaked in the federal government's fiscal fourth quarter that ended in September and have steadily declined since then.
[1/5] Plants grow through an array of solar panels in Fort Lauderdale, Florida, U.S., May 6, 2022. REUTERS/Brian SnyderMarch 6 (Reuters) - U.S. imports of solar panels are finally picking up after months of gridlock stemming from implementation of a new law banning goods made with forced labor, according to two Chinese solar companies. The gains are a relief to major Chinese suppliers including Trina Solar (688599.SS) and Jinko Solar (JKS.N), who are finally getting products into the lucrative U.S. market after long delays. Trina rival Jinko Solar Holding Co Ltd (JKS.N) has also had shipments released from detention, a source close to the company said. It would not specify how many of those were solar products.
Summary Customs delays, tariff uncertainty and soaring global demand have hiked solar costs and delayed projects as the U.S. weans itself off Chinese dependence. The Biden administration's Uyghur Forced Labor Protection Act (UFLPA) prevents the import of goods produced using forced labour in China’s Xinjiang Province, including much of the polysilicon used in solar panels. UFLPA checks have blocked panel imports at the U.S. border, delaying projects and driving up project costs. CHART: Solar manufacturing capacity by country, regionSource: International Energy Agency's Report on Solar PV Global Supply Chains, August 2022The UFLPA requires visibility into labour practices along the solar value chain. Lightsource bp has contracted for more than 20 million solar panels through 2028 and is considering imports from Southeast Asia, Turkey and India, Smith said.
U.S. Forced Labor Crackdown Is Tough, But Opaque
  + stars: | 2023-02-16 | by ( Richard Vanderford | ) www.wsj.com   time to read: +7 min
The U.S. has mounted an aggressive crackdown on imports over concerns about Chinese forced labor, but the campaign is an opaque one, with little detailed data on which companies or sectors are being targeted. January alone saw 282 shipments stopped over forced labor concerns, according to Customs data. Luis C.deBaca helped lead the U.S. fight against forced labor in the Obama administration and now teaches law at the University of Michigan. Photo: Luis C.deBacaChina has rejected allegations that it uses forced labor in Xinjiang. The agency added that it is “committed to transparency” and is developing an interactive web-based tool to provide forced labor enforcement statistics.
Nov 11 (Reuters) - More than 1,000 shipments of solar energy components worth hundreds of millions of dollars have piled up at U.S. ports since June under a new law banning imports from China's Xinjiang region over concerns about slave labor, according to federal customs officials and industry sources. The agency would not reveal the manufacturers or confirm details about the quantity of solar equipment in the shipments, citing federal law that protects confidential trade secrets. But the companies have halted new shipments to the United States over concerns additional cargoes will also be detained, the industry sources said. The sources asked not to be named because they were not authorized to speak publicly on the matter. CBP has previously said that it had detained about 1,700 shipments worth $516.3 million under UFLPA through September but has never before detailed how many of those shipments contained solar equipment.
EU Looks to Follow Tough U.S. Action on Forced Labor
  + stars: | 2022-10-31 | by ( Richard Vanderford | ) www.wsj.com   time to read: +7 min
Beijing has called allegations about the use of forced labor “vicious lies” and said its policies in Xinjiang are intended to counter violent separatism and terrorism. African mining operations, for example, have been implicated in the use of forced labor. Under the proposal, EU member states will designate authorities to enforce the regulation, and their customs authorities will enforce it at the EU’s borders. Goods made without forced labor are going to the U.S., while goods made with forced labor are shipped to the EU, the researchers said. Uniqlo has said it performs due diligence throughout its supply chain and prohibits the use of forced labor.
Risk & Compliance Journal spoke to Robert Silvers, a U.S. Department of Homeland Security undersecretary who chairs the interagency Forced Labor Enforcement Task Force. He called on companies and their top executives to make examining supply chains a high-level compliance issue to root out goods tainted by forced labor. Mr. Silvers: Compliance professionals—and, indeed, C-suite executives—need to understand that forced labor is now a top-tier compliance issue. Forced labor needs to be one of those pillars as well. Mr. Silvers: Forced labor belongs in the same breath as FCPA.
Solar stock Array Technologies has outperformed this year, and Piper Sandler thinks there's even more upside to come. Analyst Kashy Harrison upgraded Array Technologies to overweight from neutral, saying an improved forward outlook has the firm bullish on the manufacturer of solar tracking systems. Regardless, the analyst expects that Array, which is up 13.6% in 2022, will continue to outperform. Array Technologies rose 3.8% in Monday premarket trading. "We acknowledge near term risks associated with the UFLPA but see the potential for a more pronounced '23 market recovery," Harrison added.
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