On July 1, 2020, the U.S. Departments of State, Commerce, Homeland Security and the Treasury issued an advisory detailing the risk of exposure to businesses with supply chain entities that engage in human rights abuses, including forced labor in Xinjiang and elsewhere in China.

Key Notes:

  • The departments’ joint “Xinjiang Supply Chain Business Advisory” urges U.S. companies to monitor their activities in China, particularly in the Xinjiang region, where the Chinese government is repressing ethnic minorities and committing human rights abuses
  • U.S. businesses, individuals, academic institutions, service providers, investors and others operating in this region could face significant reputational, economic and legal risk if sufficient due diligence of supply chain activity in China is not conducted
  • U.S. agencies will increase enforcement against businesses in the United States who violate the law by contributing to human rights abuses in Xinjiang and elsewhere in China

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