US-China relations: Beijing has own ‘trade weapons’ to counter Xinjiang ‘forced labour’ law

China’s commerce ministry says US law on forced labour is ‘typical example of economic coercion’ and it will take ‘necessary actions’

Experts say China has the power to take countermeasures, including trade bans over American rights abuses and court action

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The Uygur Forced Labour Prevention Act bans any materials produced in Xinjiang unless importers provide ‘clear and convincing’ evidence no forced labour was involved. Photo: Xinhua

Published: 11:00pm, 22 Jun 2022Updated: 9:32am, 23 Jun 2022

China has the power to unleash its own trade weapons against the United States in response to a new law banning imports from Xinjiang over alleged forced labour, analysts say, as Beijing vows action to protect the country’s interests.

The Uygur Forced Labour Prevention Act, which came into effect on Tuesday, creates a “rebuttable presumption” that bans US imports of any materials produced in Xinjiang – where China has been accused of committing rights abuses against Uygur Muslims and other minorities – because they are at risk of being tainted with slave labour.

Companies can appeal if they provide “clear and convincing” evidence to customs authorities that no forced labour was involved in production. But traders say fulfilling the requirement is virtually impossible, meaning the law is effectively a trade embargo of all Xinjiang products.

In a statement, China’s Ministry of Commerce (Mofcom) called the ban a “typical example of economic coercion”, saying it will take “necessary actions to resolutely safeguard national sovereignty, security and development interests”.

“[The US’ move] will seriously damage the interests of Chinese and US consumers and enterprises, and will do no good for the stability of global industrial and supply chains, the easing of global inflation, or the global economic recovery,” said Mofcom’s statement on Tuesday.

Wang Wenbin, a spokesman for China’s Ministry of Foreign Affairs, said the law showed the US was attempting to “make the world decouple with China”.

“[China] will take effective measures to firmly safeguard the legitimate rights and interests of Chinese enterprises and citizens,” he said on Tuesday.