U.S. targets five Chinese companies over alleged forced labor in Xinjiang (updated)

Dynasty Digital Holdings

24/06/2021 13:05

(Adds White House quotes, background)
    WASHINGTON, June 24 (Reuters) - The Biden administration
imposed trade bans on five Chinese companies over forced labor
allegations in Xinjiang, the White House said on Thursday,
citing the G7's recent pledge to clean up the global supply
chain.
    It ordered a ban on U.S. imports of a key solar panel
material from Chinese-based Hoshine Silicon Industry Co
 603260.SS  and separately restricted exports to Hoshine, three
other Chinese firms and the paramilitary Xinjiang Production and
Construction Corps (XPCC), saying they were involved with the
forced labor of Uyghurs and other Muslim minority groups in the
Chinese province.
    The U.S. Department of Labor also added polysilicon produced
with forced labor in China to its "List of Goods Produced by
Child Labor or Forced Labor".
    "These actions demonstrate our commitment to imposing
additional costs on the People’s Republic of China (PRC) for
engaging in cruel and inhumane forced labor practices and
ensuring that Beijing plays by the rules of fair trade as part
of the rules-based international order," the White House said.
    Beijing has dismissed accusations of genocide and forced
labor in Xinjiang as lies.
    Chinese Foreign Ministry spokesman Zhao Lijian, reacting to
earlier reports of the U.S. action, said on Thursday China would
take "all necessary measures" to protect its companies' rights
and interests. 
     The three other companies added to the U.S. economic
blacklist were Xinjiang Daqo New Energy Co, a unit of Daqo New
Energy Corp  DQ.N ; Xinjiang East Hope Nonferrous Metals Co, a
subsidiary of Shanghai-based manufacturing giant East Hope
Group; and Xinjiang GCL New Energy Material Co, part of GCL New
Energy Holdings Ltd  0451.HK .  urn:newsml:reuters.com:*:nL2N2O52TT
    At least some of the companies are major manufacturers of
monocrystalline silicon and polysilicon used in solar panel
production.
    The White House, in its statement, said the companies'
practices not only ran counter to American values but also
tipped the scales against U.S. workers "by exploiting workers
and artificially suppressing wages". It noted the Biden
administration's push to boost the U.S. solar industry.
    Having the U.S. Customs and Border Patrol seize imports from
Hoshine was "based on information reasonably indicating that
Hoshine used forced labor to manufacture silica-based products,"
it added.
    Hoshine Silicon Industry earlier said on an interactive
investor platform that it does not export industrial silicon to
the United States directly, which would limit the ban's impact.
    Xinjiang Daqo New Energy Co, in an email to Reuters, said it
had "zero tolerance" towards forced labor, and does not directly
sell or buy from the United States so there would be no
"significant impact" on its business.
    The other companies or their parent firms, including XPCC,
did not to requests for comment, or could not be reached. 

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
UPDATE 5-U.S. bans imports of solar panel material from Chinese
company         urn:newsml:reuters.com:*:nL2N2O52TT
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Karen Freifeld, David Shepardson, Michael Martina
and David Brunnstrom; Additional reporting by Susan Heavey in
Washington; Emily Chow in Shanghai and Min Zhang, Gabriel
Crossley, Shivani Singh in Beijing and Beijing newsroom; Editing
by Angus MacSwan and Mark Heinrich)
 ((sheavey@thomsonreuters.com; +1-202-898-8300;))