Chinese companies on the Uyghur Forced Labor Prevention Act Entity List are establishing subsidiaries away from Xinjiang to avoid U.S. scrutiny, risk intelligence firm Kharon said May 20.
China this week said it’s temporarily reversing April announcements that added dozens of U.S. companies to the country’s unreliable entity list, which blocked those firms from participating in import and export activities in China, and its export control list, which blocked them from receiving certain dual-use items (see 2504090017 and 2504040024). Beijing will suspend those restrictions for 90 days from May 14, the Ministry of Commerce said, according to unofficial translations.
Many pharmaceutical products sold in the U.S. could have significant exposure to forced labor from their China-based supply chains, according to a report from risk management company Exiger.
Retail companies with any level of exposure in their supply chains to Chinese companies or products need to be taking proactive steps to ensure that they will not fall afoul of Uyghur Forced Labor Prevention Act enforcement, a compliance expert told importers in a webinar hosted by Logistics Brief.
China raised the tariff rate on U.S.-origin goods, from 34% to 84%, in response to President Donald Trump's April 8 executive order raising reciprocal rates by 50% (see 2504080079), the Office of the Tariff Commission of the State Council announced April 9. The new tariffs will take effect at 12:01 a.m. April 10, the commission said, according to an unofficial translation.
China retaliated against President Donald Trump's reciprocal tariffs with duties of 34% on all U.S. goods, along with new export restrictions on U.S. companies and rare earth metals.
U.S. fashion brand owner PVH Group is working with Chinese authorities to find a “positive resolution” after being added to China’s so-called unreliable entity list this week (see 2502040011), a company spokesperson said in an email.
Moments after President Donald Trump’s 10% tariffs on all Chinese products took effect Feb. 4 (see 2502030034), China announced new tariffs and export controls against the U.S. and added two American companies to its so-called unreliable entity list, including one that it accused of adopting “discriminatory measures” when sourcing products from China's Xinjiang region.
Altana, a New York-based, AI-informed global supply chain mapper, has determined that as many as 18,210 companies across the world could be exposed to corporate entities that DHS earlier this month flagged for potentially violating the Uyghur Forced Labor Prevention Act (see 2501140054). Of that group of more than 18,000 companies, 2,223 are U.S. companies.
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