छपाई तारीख · Haryanvi
US Adds 3 Chinese Entities to Xinjiang Forced Labor List: What Foreign Founders in China Need to Know
The US Department of Homeland Security added three Chinese entities to its Uyghur Forced Labor Prevention Act entity list on October 28. China's Ministry of Commerce strongly condemned the move, calling it baseless and politically motivated. For foreign founders operating or registering a company in China, this development highlights the importance of monitoring regulatory risks and understanding China's response. Here's what the official statement said and how it may affect your business planning.
US Adds Three Chinese Entities to Xinjiang Forced Labor List
On October 28 (US Eastern Time), the US Department of Homeland Security announced the addition of three Chinese entities to the entity list under the so-called Uyghur Forced Labor Prevention Act. A reporter asked China's Ministry of Commerce (MOFCOM) for comment, and a spokesperson issued a response on October 29, 2026. For foreign founders registering or operating a company in China, this development underscores the need to stay informed about international trade tensions and their potential impact on business operations.
China's Official Response
The MOFCOM spokesperson stated that China has taken note of the situation and firmly rejects the US action. According to the spokesperson, forced labor does not exist in China; all ethnic groups in Xinjiang enjoy free and equal employment, and their labor rights are effectively protected by law. The US measures are described as having no factual basis. The spokesperson accused the US of persistently manipulating "human rights" issues and using them as a cover for unilateral protectionism and bullying. China strongly condemns and firmly opposes these actions.
Previous US Actions and China's Countermeasures
The spokesperson noted that the US had recently added a large number of Chinese entities to the so-called Xinjiang Act entity list. China made solemn representations to the US and resolutely took countermeasures. However, the US has not changed course and, ignoring China's firm opposition, continues to impose new sanctions, including adding Chinese biopharmaceutical technology companies to the list. The spokesperson said these listing practices deviate from the consensus reached by the two heads of state, seriously undermine the stability of China-US economic and trade relations, and go against the spirit of humanitarianism.
Implications for Foreign Founders
For foreign entrepreneurs setting up a company in China, this exchange is a reminder that geopolitical tensions can affect business conditions. While the MOFCOM statement focuses on specific entities, it reflects broader concerns about US-China trade friction. Founders should be aware that:
- Regulatory risks may arise from international disputes. Entities placed on US lists may face restrictions in their dealings with US parties, which could indirectly affect supply chains or partnerships.
- China's government actively defends its companies. The spokesperson's remarks indicate that China will take necessary measures to safeguard its interests, which may include countermeasures.
- Staying informed is crucial. Monitoring official announcements from both Chinese and foreign governments can help founders anticipate changes that might impact their operations.
What This Means for Your Business
If you are planning to register a company in China or are already operating one, this news does not directly change the registration process or the general business environment. However, it highlights the importance of due diligence and risk management. Foreign founders should consider the following practical steps:
- Assess your exposure. If your business involves imports/exports, technology, or biopharmaceuticals, review your supply chain and partners for potential links to entities on US lists.
- Stay updated on regulations. Follow announcements from MOFCOM and other Chinese authorities to understand any new policies or countermeasures.
- Seek professional advice. Consult legal and trade experts to navigate the complexities of cross-border operations.
The MOFCOM statement reiterates China's opposition to what it calls unreasonable suppression of Chinese enterprises. It also emphasizes that the US should stop political manipulation and defamation. For foreign founders, this serves as a reminder that operating in China requires awareness of both domestic and international regulatory landscapes.
Conclusion
The US addition of three Chinese entities to the Xinjiang forced labor list has prompted a strong response from China's Ministry of Commerce. While the direct impact on most foreign founders may be limited, it is a signal of ongoing trade tensions. By staying informed and taking proactive measures, foreign entrepreneurs can better navigate the business environment in China.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.
Call to action: Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.