US Bans Imports From 37 Chinese Firms Over Alleged Forced Labor Practice

The United States has added 36 Chinese companies, including mining giant Zijin Mining Group and solar manufacturers like a JA Solar subsidiary, to its Uyghur Forced Labor Prevention Act (UFLPA) list. The announcement, made by the Department of Homeland Security, marks the largest expansion of the list since the law’s enactment in 2021, bringing the total to 144 banned entities.

The UFLPA aims to curb the use of forced labor in Xinjiang, where labor groups allege widespread exploitation of the Uyghur population. These allegations, involving forced labor camps and substandard working conditions, have drawn global condemnation. China has vehemently denied these claims, calling them baseless.

The expansion of the UFLPA list has already sent ripples through the markets. Zijin Mining saw its shares dip as much as 4.3% in Hong Kong trading. However, JA Solar and textile manufacturer Huafu Fashion Co., along with its 25 subsidiaries, saw gains, reflecting a mixed investor reaction.

Chinese Foreign Ministry spokesman Guo Jiakun denounced the UFLPA as “evil,” asserting that it interferes in China’s internal affairs. He emphasized Beijing’s determination to protect its enterprises, stating that “resolute measures” would be taken to safeguard their rights.

The impact of these bans is being felt across industries. Major Chinese solar firms are shifting to pricier Western polysilicon to mitigate risks associated with the UFLPA. JA Solar, however, is reportedly less affected, as the subsidiary in question ceased operations in 2024 and had no direct or indirect links to the US market.

BofA Global Research noted that while the immediate impact on JA Solar may be minimal, the move underscores increasing trade challenges for Chinese solar companies, particularly in the US.

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