Forced Labor Blacklists 3, including Major Chinese Plastics Source

The interagency Forced Labor Enforcement Task Force (FLETF), chaired by DHS, voted to add three People’s Republic of China (PRC)-based companies to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. Today’s announcement brings the total number of entities designated on the UFLPA Entity List to 27 companies.

Effective September 27, 2023, goods produced by Xinjiang Zhongtai Group Co. Ltd., Xinjiang Tianshan Wool Textile Co. Ltd., and Xinjiang Tianmian Foundation Textile Co. will be restricted from entering the United States as a result of the companies’ participation in business practices that target members of persecuted groups, including Uyghur minorities in the PRC.

China's Largest PVC Manufacturer

Xinjiang Zhongtai Group Co. Ltd., is headquartered in Xinjiang and produces and sells polyvinyl chloride (PVC), iconic membrane caustic soda, industrial salt, calcium carbide, viscose fiber, viscose yarn, and other textile, chemical, and building materials.

Xinjiang Zhongtai wholly owns at least 43 subsidiaries and 38 joint-stock companies. The Zhongtai Group’s leading product, in volume and impact, is polyvinyl chloride plastic, of which it produces more than two million tons per year at four different plants. It is the largest PVC producer in China, with a total capacity of 2.33 million tons, according to a 2019 study.

According to US International Trade Commission Dataweb, China accounts for 63% of all vinyl floor tiling shipped to the United States in the last two years, and Vietnam comes in second at 20%. Materially all of the PVC in these shipments is sourced from the Uyghur region, including transshipments through Vietnam, according to research published by Sheffield Halam University.

This means that scrupulous enforcement of the order presumes the denial of entry for many of the most well-known flooring brands in the United States, including Home Depot, Armstrong, Mannington, Mohawk, Congoleum, Shaw, Lumber Liquidators, Flooret, and more.

Xinjiang Tianshan Wool Textile Co. Ltd. is headquartered in Xinjiang and sells and manufactures cashmere and wool garments, as well as velvet and other textile products. Xinjiang Tianmian Foundation Textile Co. is headquartered in Xinjiang and produces yarn and textile products.

China Calls Out US Repression

China resolutely opposes the United States putting some Chinese entities into an export control list and imposing sanctions, the commerce ministry said in response: "The U.S. should immediately correct its wrongdoings and stop its unreasonable suppression of Chinese enterprises and individuals," the ministry added.

The Department of Homeland Security is also a co-sponsor of the Xinjiang Supply Chain Business Advisory Addendum released by the U.S. Department of State, along with the Office of the U.S. Trade Representative and the Departments of Treasury, Commerce, and Labor. The addendum contains information about the ongoing, widespread, and pervasive risks in supply chains posed by PRC-sponsored forced labor and other human rights abuses in Xinjiang, as well as implementation and enforcement of the UFLPA that would be of particular interest to the business and importing communities. Since the last Xinjiang Business Advisory was published in July 2021, there have been additional reports on the continuing human rights abuses in Xinjiang.

The UFLPA, signed into law by President Biden in December 2021, prohibits goods from being imported into the United States that are either produced in Xinjiang, or by entities identified on the UFLPA Entity List, unless the Commissioner of U.S. Customs and Border Protection (CBP) determines, by clear and convincing evidence, that the goods were not produced with forced labor. CBP began enforcing the UFLPA in June 2022. Since then, CBP has reviewed more than 5,000 shipments valued at more than $1.74 billion under the UFLPA. The FLETF – which also includes the Office of the U.S. Trade Representative and the U.S. Departments of Labor, State, the Treasury, Justice and Commerce – will continue to consider designations to the UFLPA Entity List.

In August, DHS also released the 2023 Updates to the Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China. DHS and its components are continuing to lead the federal government’s efforts to change importer behavior and hold perpetrators accountable for egregious forced labor abuses as outlined in the strategy.

Forced Labor Blacklists 3, including Major Chinese Plastics Source

Key Supplier for Vinyl Tile Industry

China's Largest PVC Manufacturer

China Calls Out US Repression

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