US blocks exports to solar products makers in Xinjiang, import ban to follow

The US Department of Commerce has restricted exports to Chinese producers of silicon-based materials, solar products makers and other entities for their alleged involvement in the use of forced labour in China’s Xinjiang region.

On the so-called entity list, which imposes obligations for US companies to get a special licence to export, re-export and transfer goods to those on it, are Xinjiang GCL New Energy Material Technology Co Ltd, Xinjiang Daqo New Energy Co Ltd, Xinjiang East Hope Nonferrous Metals Co Ltd, Hoshine Silicon Industry (Shanshan) Co Ltd and paramilitary organisation Xinjiang Production and Construction Corps.

“These entities have been implicated in human rights violations and abuses in the implementation of China's campaign of repression, mass arbitrary detention, forced labor and high-technology surveillance against Uyghurs, Kazakhs, and other members of Muslim minority groups in the Xinjiang Uyghur Autonomous Region,” the Department of Commerce said in a notice to the Federal Register.

Major solar-grade polysilicon producer Xinte Energy Co Ltd (HKG:1799), also based in Xinjiang but with plans to build a huge factory in Inner Mongolia, has been spared the inclusion on the entity list.

A block on imports from companies accused of using forced labour in Xinjiang is likely to follow. The US government is expected to announce on Thursday a ban on imports from Hoshine Silicon Industry Co Ltd (SHA:603260), which produces industrial silicon for a range of applications, Reuters and Bloomberg reported, citing sources in the know. Imports from Hoshine would be blocked from entry in the US unless the company can prove that its products are not made with forced labour, according to Bloomberg.

The US Department of Homeland Security and US Customs and Border Protection (CBP) will hold a joint press briefing on Thursday to discuss efforts to eradicate forced labour from US supply chains.

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