China Expands Import Ban and Rejects US Forced Labor Allegations

Among the affected companies are firms from the electronics, pharmaceutical, and cotton industries. Beijing stated, "in the Region gebe es keine Zwangsarbeit," and described the US allegations as unfounded.

The Chinese government accuses Washington of pursuing trade policy objectives with the sanctions and of undermining regional stability in Xinjiang. It announced that it would consider further countermeasures if the US did not change its course.

From US circles, it was said that the measures were aimed at documented violations of labor rights in supply chains. The US government had justified the import ban with references to forced labor in the Xinjiang region, particularly in textiles and agriculture.

China's Rationale and Response

With the expansion, Beijing is responding to the recent tightening of American import rules. Observers see this as a signal that China is prepared to further escalate the trade conflict with Washington.

Tensions between the world's two largest economies have thus intensified once again. Even direct high-level talks, such as He Lifeng's phone call with Bessent and Greer, had not brought any rapprochement.

Economic Impact

International business associations expressed concern about the impact on global supply chains. Since both electronics conglomerates and pharmaceutical companies are affected, the measure could have implications for third markets beyond the bilateral relationship.

Both sides emphasized that they remain open to a diplomatic solution. However, the symbolic scale of the new Chinese measure suggests that Beijing wants to build negotiating pressure ahead of the next round of talks.

The next steps remain to be seen. Observers expect Washington to respond in the coming weeks and possibly place additional Chinese companies on its own sanctions lists.