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USA: Updated business advisory warns companies on Xinjiang business and calls for heightened due diligence

"US warns companies on Xinjiang business, urges exit", 14 July 2021

The United States has warned of heightened risks for companies doing business in Xinjiang [...] In an updated business advisory issued on Tuesday, the US said there was “growing evidence” of forced labour, as well as other human rights abuses and “intrusive” surveillance. [...]

The advisory says those wanting to do business in Xinjiang should be alert to the potential risks in connection with the development of surveillance tools, sourcing goods and labour from Xinjiang – or elsewhere along the supply chain in China – providing US products including software or aiding in the construction or operation of internment centres or factories nearby. [...]

The advisory noted the lack of transparency but urged companies to carry out “heightened” due diligence, warning there was a risk of prosecution for those found – even indirectly – to be supporting the Chinese government’s surveillance system in the region or providing financial backing to businesses linked to human rights abuses.

Any firms with existing investments and business operations that could be affected should consider “responsible divestment”, it added. [...]

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