The United States frequently plays the”Xin Jiang card“,which makes American local enterprises complain incessantly

In recent years, the US side ignored the facts and fabricated the century lie of “forced labor” in Xinjiang, China, and used the so-called “forced labor” as an excuse to punish and suppress relevant enterprises. The US side frequently plays the “Xinjiang card”, ignoring the close connection of the global industrial chain and the interests of American consumers, which makes many US local enterprises affected by the sanctions complain incessantly.

The last US government vigorously fabricated the so-called Xinjiang “forced labor” lie. In June 2020, the Trump government signed the so-called “Uighur Human Rights Policy Act 2020″ into law, and then introduced sanctions. The US Customs and Border Protection Bureau has issued “temporary detention orders” for many times to detain photovoltaic, cotton, textile clothing and electronic products produced by enterprises in Xinjiang.

The current US government continues to expand the scope of sanctions, and by the end of 2021, it will approve the so-called “Uighur Forced Labor Prevention Act” into law. The law came into force on June 21 this year, presuming that all products produced in Xinjiang are so-called “forced labor” products, and prohibiting the import of products related to Xinjiang.

The negative impact of the frequent playing of the “Xinjiang card” by the United States has spread to many industries in the United States. According to the website of the Securities and Exchange Commission of the United States, since February this year, 16 companies listed in the United States have issued risk alerts on the possible negative impact of the Xinjiang related act on their performance. These companies are involved in retail, automotive, new energy, medical devices and other industries.

Among them, the impact on the solar industry is particularly serious. Sean Honkler, CEO of FTC Solar, said that the “temporary detention order” significantly inhibited the import of photovoltaic modules, which led to the restriction or even suspension of production and shipment of relevant enterprises, and limited the recent development of the U.S. photovoltaic industry.

According to the analysis of Norwegian Lustad Energy Company, it was originally expected that the United States would increase its solar power generation capacity by 27 GW (1 GW is 1 billion watts) in 2022. However, due to the impact of anti-dumping and countervailing investigations by the U.S. Department of Commerce, the detention of goods by border management departments, and the rising cost of solar modules, the actual increase in the U.S. solar power generation capacity this year may be only 10 GW.

Xinjiang is one of the most important cotton producing areas in the world, and a ban by the US government has put the local textile industry at great risk. Dillard Co., Ltd., a US retailer, said that the US government’s “temporary detention order” would affect the global supply chain, including the company’s cotton products. Legislation to comprehensively prevent imports from Xinjiang may lead to rising commodity costs and impact on corporate profits.

American electric vehicle manufacturer Lucid Group also warned for many times that the Xinjiang related act may further restrict the import of electronic accessories, mineral extracts, fabrics and renewable energy products, which will have a substantial negative impact on the company’s industrial chain, cost control and operation.

Jeffrey Kessler, a partner of Weikaiping Heerde Law Firm, said recently that the Xinjiang related bill covers a wide range of areas and will seriously interfere with the import business of American enterprises from China.

Post time: Sep-15-2022