US escalates China supply chain pressure with largest-ever ‘forced labor’ ban

The U.S. Department of Homeland Security announced yesterday its largest-ever expansion of forced labor-related import bans, blocking 37 Chinese companies and intensifying supply chain risks for major luxury brands ahead of Donald Trump’s return to the White House on January 20. The action, which brings the total number of banned entities to 144, targets Huafu Fashion Co, one of the world’s largest textile manufacturers, along with 25 of its subsidiaries. The ban affects companies that have previously supplied materials to global fashion giants, including H&M, Adidas, and Lacoste. “In adding 37 companies to the UFLPA Entities List and bringing the total to nearly 150, we again demonstrate our relentless fight against the cruelty of forced labor,” said Secretary of Homeland Security Alejandro Mayorkas. The move signals an acceleration of U.S. efforts to eliminate forced labor from supply chains, particularly from China’s Xinjiang region, where human rights groups say Uyghurs and other minorities face widespread abuse. China denies any wrongdoing. Extending beyond textiles to include critical minerals and solar technology companies, the ban reflects broader U.S.-China tensions over supply chain security. Acting Under Secretary for Policy Robert Paschall emphasized the action’s significance, calling it “the largest-ever batch of additions” to the banned list. Major retailers have already begun distancing themselves from affected suppliers. H&M stopped its indirect relationship with Huafu in 2020, while Adidas and other brands have taken steps to address forced labor concerns in their supply chains. The ban takes effect on January 15, requiring companies to prove their products are not made with forced labor before entering U.S. markets. This represents a significant escalation from previous actions — U.S. Customs has reviewed over 11,300 shipments worth more than $3.67 billion under the Uyghur Forced Labor Prevention Act since enforcement began in June 2022. For global brands, the expanding restrictions compound existing supply chain challenges and may force costly shifts in sourcing strategies. The prospect of Trump’s return to office, combined with bipartisan support for tough measures against China, suggests luxury brands may face even stricter oversight of their supply chains in the coming years. List of banned textile companies: Huafu Fashion Co Ningbo Huafu Donghao Industrial Co Ninghai Huafu Textile Co Zhejiang Weixin Trading Co Aksu Huafu Color Spinning Co. (also known as: Aksu Huafu Textiles Co, Akesu Huafu, Aksu Huafu Dyed Melange Yarn, and Akesu Huafu Melange Yarn Co) Aksu Biaoxin Fiber Co (formerly known as Aksu Shangheng Fiber Co) Xinjiang Huafu Textile Co Xinjiang Huafu Hengfeng Cotton Industry Co Kuche Zongheng Cotton Industry Co Xinjiang Huafu Hongfeng Agricultural Development Co Shaya Yinhua Cotton Industry Co Awati Huafu Textile Co Xinjiang Huafu Color Spinning Group Co Xinjiang Huafu Cotton Industry Group Co Shihezi Standard Fiber Co Shihezi Huafu Hongfeng Cotton Industry Co Shihezi Huafu Hongsheng Cotton Industry Co Xinjiang Tianhong Xinba Cotton Industry Co (also known as Xinjiang Tianhong New Eight Cotton Industry Co) Huyanghe Huafu Hongsheng Cotton Industry Co Xinjiang Liufu Textile Industrial Park Co Kuitun Jinfu Textile Co Xinjiang Tianfu Cotton Supply Chain Co Xinjiang Cotton Industry Group Yuepu Lake Cotton Industry Co Xinjiang Cotton Industry Group Jiashi Cotton Industry Co Xinjiang Zefu Cotton Co Xinjiang Shengfu Cotton Industry Co

China supply chain risks soar on expanded US ban

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China supply chain risks soar on expanded US ban