Due diligence firms in China's Xinjiang region face rising scrutiny ...

Due diligence firms in China's Xinjiang region face rising scrutiny ...

The Biden administration has issued an advisory urging businesses to conduct human rights due diligence on their supply chains in relation to forced labor of Uyghurs and other minority groups in China's Xinjiang region. The advisory warns of increased surveillance and raids on researchers studying forced labor in China. Due diligence firms have been subject to raids and increased scrutiny, making it difficult to protect supply chains from links to forced labor. The U.S. has detained $1.7 billion worth of U.S.-bound shipments tied to forced labor, with electronics and apparel being the most detained products.

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Frequently Asked Questions

1. What is the current scrutiny faced by due diligence firms in China's Xinjiang region?

Due diligence firms in China's Xinjiang region are facing increased surveillance and scrutiny as the U.S. tries to root out forced labor from supply chains. Source

2. Why should companies conducting supply chain activities in China, including Xinjiang, conduct due diligence?

Companies with supply chains that link to China, including Xinjiang, should conduct due diligence to ensure that their suppliers are not engaging in forced labor. Source

Yes, the Uyghur Forced Labor Prevention Act (UFLPA) is a relevant legislation. It is important to check the FAQ section of the UFLPA Region Alert and China Postal Code Requirements for more information. Source

Firms should undertake due diligence practices to prevent engagement with entities involved in human rights abuses or supply chains implicated in human rights abuses in Xinjiang. Source

5. Are foreign firms in China worried about due diligence turning into spy investigations?

Yes, there is a concern among U.S. companies in China that due diligence checks might veer into more sensitive areas, such as suppliers linked to China's Xinjiang region. Source

Please note that the answers provided here are based on the limited information available from the search results. For more specific and detailed information, it is recommended to refer to the sources provided.