The Trump administration announced measures to block shipments from the Chinese biotech company BGI Group and its affiliates. The decision stems from allegations of forced labor ties in the Xinjiang region of China.
Starting Thursday, U.S. Customs and Border Protection will prohibit goods from BGI Group, a prominent player in genetic sequencing technologies. This includes the company’s affiliates, BGI Genomics and MGI Tech. The Department of Homeland Security (DHS) cited evidence that these companies are either sourcing materials from Xinjiang or collaborating with the local government to exploit forced labor.
The action highlights biotechnology as a new area of economic and technological contention between the U.S. and China. Recently, the Treasury Department proposed new restrictions on U.S. investments in biotechnology and other advanced technologies, barring their flow into nations like China.
China has firmly denied the forced labor accusations, labeling the blockade as political manipulation. The Ministry of Commerce condemned the move, claiming it undermines China-U.S. relations and contravenes humanitarian principles. China vowed to protect its interests.
This trade action precedes a planned meeting between Chinese leader Xi Jinping and U.S. President Donald Trump. The leaders are expected to meet in the southern Chinese city of Shenzhen, BGI Group’s headquarters. Furthermore, Xi may travel to Florida for the Group of 20 summit, where he might meet Trump again.
BGI Group has denied the forced labor accusations. The company stated it opposes forced labor in any form. BGI has faced scrutiny from U.S. lawmakers over concerns about its alleged governmental ties and access to genetic data, which may threaten U.S. security.
Despite congressional failure to prohibit BGI from working with federally funded medical providers, a related provision was passed last year. This required a list of biotechnology companies of concern to be created.
The Pentagon has identified BGI Group and its affiliates as Chinese military companies, a designation affecting their reputation. DHS cited credible information, including corporate and government reports, indicating that the companies have facilitated genetic testing in Xinjiang, further supporting the forced labor claims.
These restrictions are part of the Uyghur Forced Labor Prevention Act. This act, signed by President Joe Biden, followed reports of human rights abuses against Uyghurs and Muslim minorities in Xinjiang. China dismissed the claims as false, defending its policies as anti-terrorism measures.
The Trump administration recently expanded the trade blacklist significantly to include 43 more Chinese companies, totaling 187 entities. Homeland Security Secretary Markwayne Mullin has pledged to shield American workers from unfair competition by foreign companies profiting from so-called slave labor.