Wade Weems Analyzes the Uyghur Forced Labor Prevention Act for the Anti-Corruption Report

January 7, 2021

Publication: Anti-Corruption Report

The expected adoption of the Uyghur Forced Labor Prevention Act by the U.S. adds yet another tool in its increasingly confrontational posture against China, adding pressure to both Chinese and U.S. companies, Kobre & Kim’s Wade Weems and William Weightman wrote in the Anti-Corruption Report.

During the Trump administration, the U.S. has used enforcement tools in new ways to target Chinese companies for human rights abuses, such as the Department of Commerce’s Entity List to ban U.S. exports to listed entities. However, many companies in Xinjiang, where Uyghurs are used as forced labor, do not rely on U.S. exports, so the proposed law will add a much needed tool in the U.S. arsenal.

The act requires companies to certify that their supply chains do not include transactions with sanctioned entities involved in human rights abuses in Xinjiang. With increased scrutiny, Weems and Weightman offer some best practices for companies to protect their interests, including due diligence, learning about U.S. agencies and internal investigations. This is all the important as the incoming Biden administration is expected to continue the aggressive stance against China.

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