US to block import of cotton goods produced by China’s leading supplier in Xinjiang
- Xinjiang Production and Construction Corps (XPCC), responsible for a third of China’s cotton production, is accused of widespread use of forced labour
- The move by the US Customs and Border Protection agency also applies to products made by companies that use XPCC cotton in their supply chain
The US government said on Wednesday it would begin blocking the import of all cotton products made by the Xinjiang Production and Construction Corps (XPCC), citing concerns that the sprawling, quasi-military entity in northwest China is responsible for widespread use of forced labour.
The new ban will apply not only to cotton products made by the XPCC and its affiliates but also garments made by other entities – including those outside China – that use raw cotton harvested by the XPCC in the Xinjiang Uygur autonomous region.
The XPCC is responsible for about a third of China’s cotton production and is deeply enmeshed in supply chains across the country and beyond. Textile industry experts say that it is effectively impossible to source textile goods from China without some kind of involvement of the XPCC.
Under the new measures, any products entering the US that authorities determine contain cotton produced by the XPCC will be seized at the border and released only if the importer can provide conclusive evidence that forced labour was not used in the production of the goods.
Speaking with reporters on Wednesday, law enforcement officials acknowledged the new order would pose significant challenges to US firms that will have to make drastic changes to their supply chains.