China-US Economic Ties

China Sanctions US Firm Over Xinjiang-Related Investigations

 

China on Tuesday imposed sanctions on a US firm founded by former Treasury Department officials for providing “so-called evidence for America’s illegal sanctions related to Xinjiang”.

The firm, Kharon, provides data to companies on alleged forced labour in the region to help them comply with US laws.

China’s foreign ministry said it would take “countermeasures” against Kharon and its director of investigations.

 

Also on AF: Beijing Slams US Plan to Review China’s Supply of Legacy Chips

 

In response, Los-Angeles based Kharon said it had no presence in China, so the action was “largely symbolic” and would not impact its operations or ability to service its clients.

“In service of our clients and all global businesses that seek to implement leading risk management programs, Kharon will continue to provide research and data analytics that is objective, independent, and based on reliable sources,” it said in a statement.

A former researcher of the US-based Center for Advanced Defense Studies will also be subject to sanctions.

The affected individuals will be banned from entering China, including Hong Kong and Macau, and the property of Kharon in China will be frozen, the ministry said.

Kharon said companies depend on its forced labour data to comply with the Uyghur Forced Labor Prevention Act (UFLPA).

The act was signed into US law in 2021 to deny entry to goods from listed companies originating from the Chinese region of Xinjiang unless they can prove they were not produced with or tied to forced labour.

The United States this month curbed imports from three more Chinese firms including Sichuan Jingweida Technology Group, previously found by Kharon to have participated in labour transfers in 2017 in which thousands of workers were sent to work at various production facilities.

US officials say they believe Chinese authorities have established labour camps for Uyghurs and other Muslim minority groups in Xinjiang. Beijing denies any abuses.

The Xinjiang-related sanctions are based on “lies” and “false narratives”, according to Beijing, which says the US is bent on undermining Xinjiang’s stability and curbing China’s development.

 

  • Reuters, with additional editing by Vishakha Saxena

 

Also read:

Senior Auditors Wary on Review of VW Plant in China’s Xinjiang

US Puts More Chinese Officials, Firms on Xinjiang Sanctions List

China Raids Capvision Amid Crackdown on Due Diligence Firms

China Raids Office of US Due Diligence Firm, Detains Staff

US Consultancy Firm in China Worked on Xinjiang Before Raids

 

 

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at vishakha.saxena@asiafinancial.com

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