The United States has banned imports from three Chinese genomics companies over their alleged roles in enabling the forced labour of Uyghurs and other ethnic minorities in China's Xinjiang region, the Department of Homeland Security announced on Wednesday.

Source: Reuters

BGI Genomics Co. Ltd, MGI Tech Co. Ltd and Shenzhen BGI Technology Co. Ltd — which the US says is also known as the BGI Group — were added to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. The list identifies entities that Washington says use or facilitate the use of forced labour of Uyghurs and other minorities, or source material from the Xinjiang Uyghur Autonomous Region.

Under the measure, US Customs and Border Protection is instructed to stop goods from companies on the list from entering the United States unless exporters can rebut the presumption that they were made with forced labour.

3Chinese genomics companies added to the UFLPA Entity List on Oct 28
UFLPAthe US law under which Xinjiang-linked goods are presumed to be made with forced labour unless importers prove otherwise

The Homeland Security Department alleged that BGI Group and BGI Genomics conduct genetic testing in the region while working with the government to facilitate the recruitment, transport, transfer or receiving of forced labour, and that MGI Tech provides equipment and related support to the government to conduct the testing. The US government says it believes BGI Group tests genetic material of people from the region as well as that of plants and animals. These are US government allegations, which the companies and Beijing deny.

Companies and Beijing push back

Shenzhen-based MGI Tech rejected the allegations, saying they are inconsistent with the facts, and added that its business activities in the US represent a limited part of its overall business. “We have zero tolerance for forced labor in any form,” the company said in a statement. BGI Group has also said it has not engaged in forced labour and opposes the practice in any form.

Source: Reuters

On Thursday, China's commerce ministry condemned the restrictions and vowed to take necessary measures to defend the country's interests. The ministry said workers of all ethnic groups in Xinjiang enjoy freedom and equal employment opportunities and that their labour rights are protected by law, and accused Washington of using human rights as a pretext for unilateral protectionism and bullying. It said the measures violated the consensus reached by the two countries' leaders and seriously undermined the stability of bilateral economic and trade relations, and urged Washington to stop what it called political manipulation and attacks on Chinese companies.

Source: Dow Jones Newswires via Morningstar

The US and human rights groups have accused Chinese authorities of abuses against Uyghurs and other religious and ethnic minority groups in Xinjiang, including forced labour. Beijing has repeatedly denied the allegations and says its policies in the region are aimed at fighting terrorism and keeping order. The listing extends the US-China contest into biotechnology and genetic data, an area both governments increasingly treat as strategically sensitive.