The United States has escalated trade tensions with China by imposing additional sanctions on 43 Chinese companies over forced labor allegations in Xinjiang Uygur Autonomous Region. China strongly objected, characterizing the measures as economic coercion under the guise of human rights issues, and criticized the move as damaging trust by announcing sanctions immediately after a recent dialogue between the economic leaders of both countries.

[연합뉴스제공](Photo : U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng)

▲ U.S. Expands UFLPA Application... Chinese Companies Under Sanctions Increase to 187

On the 31st of last month (local time), the U.S. government added 43 Chinese companies to the sanctions list under the Uyghur Forced Labor Prevention Act (UFLPA), citing allegations of forced labor in Xinjiang and human rights violations against ethnic minorities including Uyghurs.

With this measure, the total number of Chinese companies subject to U.S. UFLPA sanctions has increased to 187. The U.S. is restricting transactions involving these companies in the American market and supply chains, based on suspicions that they are linked to forced labor in Xinjiang.

▲ China: "Baseless Economic Coercion... Infringement on Legitimate Rights"

China's Ministry of Commerce stated on the 1st that the U.S. sanctions were imposed without any factual basis.

The ministry criticized the unilateral sanctions against Chinese companies by applying U.S. domestic law under the pretext of human rights and forced labor issues as typical economic coercion, saying it seriously infringes upon the legitimate rights and interests of the relevant companies and undermines the stability of global industrial and supply chains.

▲ Sanctions Announced Just One Day After Economic Dialogue... Trust Damaged

China expressed strong dissatisfaction, particularly regarding the timing of the sanctions announcement immediately following the video call between economic officials of both countries.

China's Ministry of Commerce stated that measures harming China's interests were announced merely one day after economic and trade officials of both countries exchanged candid and in-depth opinions for stable development of economic relations, arguing this severely deviates from agreements between the leaders of both nations. China then declared its firm opposition to the measures.

▲ "Must Stop Political Exploitation"... Suggests Possible Retaliation

China demanded the withdrawal of the measures, arguing that the U.S. is politically exploiting the Xinjiang issue.

China called on the U.S. to cease attacks and criticism of Xinjiang, stop politically instrumentalizing the so-called forced labor issue, and immediately halt unfair suppression of Chinese companies. It also stated that it will firmly safeguard the legitimate rights and interests of Chinese companies through necessary measures, hinting at the possibility of countermeasures in the future.

▲ Ongoing Conflict Over Human Rights and Supply Chains

The sanctions are seen as another example showing that human rights issues and global supply chain management have become core issues in U.S.-China strategic competition.

Previously, China's state-run Xinhua News Agency reported that He Lifeng, Vice Premier of China's State Council, held a video call on the 30th of last month with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer to discuss economic and trade issues between the two countries. However, with sanctions announced immediately after the dialogue, efforts to restore trust and discuss economic cooperation between the two nations have once again come under scrutiny.