World

China accuses US of economic coercion after new forced labour trade restrictions

Beijing accuses the United States of disrupting global supply chains and harming legitimate business interests

Updated 2 hours ago · Published on 01 Aug 2026 1:18PM

China accuses US of economic coercion after new forced labour trade restrictions
Beijing rejects Washington’s decision to blacklist 43 more Chinese companies over alleged forced labour practices in Xinjiang (Photo from Reuters) - August 1, 2026

CHINA has accused the United States of using human rights concerns as a pretext for economic pressure after Washington added 43 Chinese companies to a blacklist restricting imports linked to alleged forced labour practices in the Xinjiang region.

China’s Ministry of Commerce said on Saturday that the US decision lacked a factual basis and undermined the stability of global supply chains.

“The U.S. has used its domestic laws to impose unilateral sanctions on Chinese companies — a clear act of economic coercion that has harmed the companies' legitimate rights,” Reuters cited the ministry saying in a statement.

The move follows a US decision on Friday to expand its Uyghur Forced Labor Prevention Act Entity List, which blocks imports from companies accused by Washington of involvement in human rights abuses against Uyghur and other minority groups in Xinjiang.

The United States has alleged that forced labour and other abuses have taken place in the western Chinese region, while Beijing has repeatedly denied the accusations.

China said Xinjiang was stable, prosperous and free of any “forced labour”, rejecting claims made by Washington.

In its statement, the Commerce Ministry urged the US to stop “attacking and smearing” Xinjiang and called on Washington to end what Beijing described as unfair pressure on Chinese companies.

It warned that China would take measures to safeguard the legitimate rights and interests of affected businesses.

The latest restrictions add to growing tensions between the world’s two largest economies, with trade, technology, security and human rights issues continuing to fuel disputes between Washington and Beijing.

The Uyghur Forced Labor Prevention Act, introduced by the US, prohibits imports from Xinjiang unless companies can prove their supply chains are free from forced labour.

China has consistently rejected the legislation, describing it as an attempt to suppress Chinese development and interfere in its internal affairs. - August 1, 2026

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