Apparel / Textiles & Accessories

In recent years, the US side has ignored the facts, concocted a century lie about the existence of "forced labor" in Xinjiang, China, and used the so-called "forced labor" issue as an excuse to sanction and suppress relevant enterprises. The US side frequently plays the "Xinjiang card", completely ignoring the close links of the global industrial chain and the interests of American consumers, which makes many American domestic enterprises affected by the sanctions complain incessantly.

The last US government wantonly concocted the so-called "forced labor" lies in Xinjiang. In june2020, the trump administration signed the so-called "Uighur human rights policy act 2020" into law, and then issued sanctions. The U.S. Customs and Border Protection Bureau has repeatedly issued "temporary detention orders" to detain photovoltaic, cotton, textile, clothing and electronic products produced by enterprises in Xinjiang.

The current US government continued to expand the scope of sanctions and approved the so-called "Uygur forced labor Prevention Act" into law at the end of 2021. The law came into effect on June 21 this year, presuming all products produced in Xinjiang as so-called "forced labor" products, and prohibiting the import of products related to Xinjiang.

The negative impact of the US side's frequent playing of the "Xinjiang card" has spread to many industries in the United States. According to the website of the U.S. Securities and Exchange Commission, since February this year, 16 companies listed in the United States have issued risk tips on the possible negative impact of the Xinjiang related bill on their performance. These companies are involved in the retail, automotive, new energy and medical devices industries.

Among them, the impact on the solar energy industry is particularly serious. Sean hunkler, CEO of FTC solar, said that the "suspension order" significantly inhibited the import of photovoltaic modules, led to relevant enterprises restricting or even stopping production and suspending shipment, and limited the recent development of the U.S. photovoltaic industry.

According to the analysis of Norwegian lvstad energy company, it was originally expected that the United States would add 27 gigawatts of solar power generation capacity in 2022 (1 gigawatt is 1billion watts). However, due to the impact of anti-dumping and countervailing investigations by the U.S. Department of Commerce, the detention of goods by border management departments, and the rising cost of solar modules, the actual new solar power generation capacity in the United States this year may be only 10 gigawatts.

Xinjiang is one of the most important cotton producing areas in the world. The US government's ban has put the local textile industry at great risk. Dillard Co., Ltd., a US retailer, said that the US government's "suspension order" would affect the global supply chain including the company's cotton products. The legislation to comprehensively prevent the import of goods from Xinjiang may lead to rising commodity costs and impact on the profits of enterprises.

Luxid group, a US electric vehicle manufacturer, has repeatedly warned that the Xinjiang related bill may further restrict the import of electronic parts, mineral extracts, fabrics and renewable energy products, which will have a substantial negative impact on the company's industrial chain, cost control and operation.

Jeffrey Kessler, a partner of weikaiping and Erde law firm, said recently that the bill concerning Xinjiang covers a wide range and will seriously interfere with the import business of American enterprises from China.