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US-China trade war
China

US warns companies with supply chain links to Xinjiang of economic, legal risks

  • The vaguely worded advisory comes amid US and global discontent over the Hong Kong national security law and reports of human rights violations in Xinjiang
  • It also aims to hasten the decoupling of the two largest economies, forcing companies, countries and chief executive officers to choose a side

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“CEOs should read this notice carefully,” said Secretary of State Mike Pompeo. Photo: AFP
Mark Magnier
The Trump administration launched another salvo in its ongoing pressure campaign against China on Wednesday, warning companies that they face unspecified economic and legal risks if they help Beijing carry out human rights abuses in Xinjiang.

The announced “Xinjiang Supply Chain Business Advisory” comes amid mounting bipartisan US and global discontent over the new Hong Kong national security law and growing reports of human rights violations in China’s far western area.

The hastily passed Hong Kong security law enacted Tuesday extends China’s grip over the city and subjects its residents to lifelong prison terms for violating vaguely worded sedition, terrorism and separatism provisions.
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Wednesday’s Xinjiang initiative, jointly announced by the State, Treasury, Commerce and Homeland Security departments, lacks specifics but is an apparent attempt to fuel two Trump administration objectives, analysts said.

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Beijing’s passage of national security law for Hong Kong draws international criticism

It aims in part to punish Beijing for imposing the Hong Kong security law, they said, and to hasten the decoupling of the two largest economies, forcing companies, countries and chief executive officers to choose a side.

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“CEOs should read this notice carefully,” said Secretary of State Mike Pompeo in a press briefing. “Be aware of the reputational, economic and legal risks of supporting such assaults on human dignity.”

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