Firm provides data to companies on alleged forced labour in Xinjiang region to help them comply with US laws
27 December 2023 - 08:40
byRyan Woo and Liz Lee
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Grasslands of the Xinjian region of China, where the majority of ethnic Uyghurs live. Accusations of repression of the Uyghurs has been denied by China. Picture: 123RF/06PHOTO
Beijing — China's foreign ministry said it had sanctioned Kharon, a US firm founded by former treasury department officials that provides data to companies on alleged forced labour in the Xinjiang region to help them comply with US laws.
The foreign ministry said on Tuesday it would take “countermeasures” against Kharon and its director of investigations for providing “so-called evidence for America's illegal sanctions related to Xinjiang”.
In response, Los-Angeles based Kharon said it had no presence in China, so the action was “largely symbolic” and would not have an effect on its operations or ability to service its clients.
“In service of our clients and all global businesses that seek to implement leading risk management programmes, Kharon will continue to provide research and data analytics that is objective, independent and based on reliable sources,” it said in a statement.
A former researcher of the US-based Centre for Advanced Defence Studies will also be subject to sanctions.
The affected individuals will be banned from entering China, including Hong Kong and Macau, and the property of Kharon in China will be frozen, the ministry said.
Kharon said companies depend on its forced labour data to comply with the Uyghur Forced Labour Prevention Act.
The act was signed into US law in 2021 to deny entry to goods from listed companies originating from the Chinese region of Xinjiang unless they can prove they were not produced with or tied to forced labour.
The US in December curbed imports from three more Chinese firms including Sichuan Jingweida Technology Group, previously found by Kharon to have participated in labour transfers in 2017 in which thousands of workers were sent to work at various production facilities.
US officials say they believe Chinese authorities have established labour camps for Uyghurs and other Muslim minority groups in Xinjiang. Beijing denies any abuses.
The Xinjiang-related sanctions are based on “lies” and “false narratives”, according to Beijing, which says the US is bent on undermining Xinjiang's stability and curbing China's development.
Grasslands of the Xinjian region of China, where the majority of ethnic Uyghurs live. Accusations of repression of the Uyghurs has been denied by China. Picture: 123RF/06PHOTO
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
China sanctions US research provider Kharon
Firm provides data to companies on alleged forced labour in Xinjiang region to help them comply with US laws
Beijing — China's foreign ministry said it had sanctioned Kharon, a US firm founded by former treasury department officials that provides data to companies on alleged forced labour in the Xinjiang region to help them comply with US laws.
The foreign ministry said on Tuesday it would take “countermeasures” against Kharon and its director of investigations for providing “so-called evidence for America's illegal sanctions related to Xinjiang”.
In response, Los-Angeles based Kharon said it had no presence in China, so the action was “largely symbolic” and would not have an effect on its operations or ability to service its clients.
“In service of our clients and all global businesses that seek to implement leading risk management programmes, Kharon will continue to provide research and data analytics that is objective, independent and based on reliable sources,” it said in a statement.
A former researcher of the US-based Centre for Advanced Defence Studies will also be subject to sanctions.
The affected individuals will be banned from entering China, including Hong Kong and Macau, and the property of Kharon in China will be frozen, the ministry said.
Kharon said companies depend on its forced labour data to comply with the Uyghur Forced Labour Prevention Act.
The act was signed into US law in 2021 to deny entry to goods from listed companies originating from the Chinese region of Xinjiang unless they can prove they were not produced with or tied to forced labour.
The US in December curbed imports from three more Chinese firms including Sichuan Jingweida Technology Group, previously found by Kharon to have participated in labour transfers in 2017 in which thousands of workers were sent to work at various production facilities.
US officials say they believe Chinese authorities have established labour camps for Uyghurs and other Muslim minority groups in Xinjiang. Beijing denies any abuses.
The Xinjiang-related sanctions are based on “lies” and “false narratives”, according to Beijing, which says the US is bent on undermining Xinjiang's stability and curbing China's development.
Reuters
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