Following criticisms from House Ways and Means Committee Democrats over lack of forced labor enforcement action on imports of polysilicon products from China (see 2106100008), CBP "will provide a full response directly to Chairman Neal and the Committee on Ways and Means," an agency spokesperson said, referring to Rep. Richard Neal, D-Mass. "Over the past two years, CBP has taken a record number of enforcement actions against entities in Xinjiang and elsewhere that use forced labor to produce goods linked to U.S. supply chains. CBP will continue to aggressively investigate and prevent goods made wholly or in part by forced labor from entering the United States," the spokesperson said. The lawmakers said CBP suggested to them in February that enforcement action was imminent. CBP didn't respond as to whether such action is still coming.
CBP told lawmakers in February that it planned to take enforcement action over imports of polysilicon products from China related to forced labor, Democrats on the House Ways and Means Committee said in a June 10 letter they sent to CBP Acting Commissioner Troy Miller. They chided him for not taking action against polysilicon products made in the Xinjiang province of China. Polysilicon, which is used in solar panels, has been mentioned as a CBP possible target in recent months (see 2104260059).
The China package once known as the Endless Frontier Act passed the Senate with 68 votes. The U.S. Innovation and Competition Act includes a trade amendment that authorizes a new Miscellaneous Tariff Bill, restarts applications for Section 301 tariff exclusions, adds an inspector general to the Office of the U.S. Trade Representative, renews the Generalized System of Preferences benefits program for more than five years and directs the CBP to increase inspections of imports with the aim of finding counterfeits. The bill passed the evening of June 8.
Co-chairs of the Congressional-Executive Commission on China, Sen. Jeff Merkley, D-Ore. and Rep. Jim McGovern, D-Mass. are asking Apple to engage with CBP to ensure that the company's supply chains are free of forced labor, and that they do not hire suppliers that accept "labor transfer" workers. According to press reports, Uyghur workers are being transplanted to other parts of China, in addition to their conscription at local factories and fields. CBP didn't comment.
The administration issued a lengthy report after a 100-day review of supply chain vulnerabilities that recommends a lot of reshoring of manufacturing, in semiconductors, critical minerals and pharmaceutical ingredients, but also suggests a "trade strike force" to be deployed against unfair foreign trade practices that have hurt domestic companies that contribute to critical supply chains.
A Japanese and a Korean economist said that trade tensions between their two countries are no longer really disrupting Korea's semiconductor industry, though they are still increasing costs for some of the Japanese exporters.
The Commercial Customs Operations Advisory Committee (COAC) for CBP will next meet remotely June 23, CBP said in a notice. Comments are due in writing by June 22.
A senator and a House member who sponsored the Uyghur Forced Labor Prevention Act in their respective chambers have asked the union that represents National Basketball Association players to consider the fact that Chinese sportswear companies Anta, Li-Ning and Peak use cotton grown in the Xinjang region. The U.S. blocks the importation of all cotton grown in Xinjiang because of the probability that it was planted or harvested with forced labor of Uyghur Muslims. The National Basketball Players Association didn't immediately comment.
International Trade Today is providing readers with the top stories from May 24-28 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Top trade officials from Europe, Japan and North America emphasized problematic economic behavior in China, without mentioning the world's second-largest economy by name, at the end of the G-7 meeting of trade ministers.