US bans imports from 37 more Chinese companies

The Biden administration has placed 37 Chinese companies from the mining, solar, and textile industries on its export ban list, citing concerns over forced labor practices in the Xinjiang region.

The firms include mining giant Zijin Mining Group, and solar companies such as a subsidiary of JA Solar Technology Co., according to a statement from the Department of Homeland Security, News.Az reports, citing Bloomberg.

The list also includes textile manufacturer Huafu Fashion Co. and 25 of its subsidiaries.

Zijin Mining fell as much as 4.3% in early trading in Hong Kong. Still, JA Solar and Huafu Fashion shares were higher.

US and European companies have been under pressure to pull away from factories that make clothes and other products in the Xinjiang region. Labor groups have documented alleged forced labor camps and other poor working conditions involving the local Uyghur population. China disputes these claims.

The additions represent the largest single expansion of the Uyghur Forced Labor Prevention Act list since the law was passed in 2021, and bring the total number of companies banned to 144, according to the statement.

Major Chinese solar companies have already started switching to more expensive polysilicon from Western countries to eliminate risks linked to the law and import ban. As for JA Solar, the impact of its addition to the US list is expected to be limited as the subsidiary closed in 2024 and didn’t supply directly or indirectly to the US, according to a note by BofA Global Research.

“That said, this serves another reminder that Chinese solar will face rising trade headwinds especially in the US,” BofA Global said.

News.Az