According to government data, electronics worth a record $74 million, including solar panels and microchips primarily from Malaysia and Vietnam, were either refused entry into the United States in September or had their components inspected for evidence of forced labour in China.

Tighter U.S. regulations aimed at addressing human rights abuses in China’s Xinjiang region—home to the predominantly Muslim Uyghur minority—were implemented in June 2022 and have resulted in restrictions on over 6,000 shipments valued at over $2 billion as of September, the most recent month for which U.S. customs data are available.

Based on the data that was updated earlier in November, about half of them were either denied or pending approval.

Less than $20 million worth of goods in August was held up for checks, while in September alone, $82 million worth of shipments were either declined or refused. Ninety percent of the checks were for electronics.

No comments on the issue were available from the US customs authority. 

Major suppliers of semiconductors and solar panels to the US, Malaysia and Vietnam accounted for more than two thirds of the containers that were refused or detained. Vietnam is a major provider of clothing, shoes, and textiles as well.

Xinjiang is a leading manufacturer of semiconductors and cotton. Polysilicon is used in photovoltaic panels.

Since the new regulations went into effect, roughly three times as many cargoes as China’s have been refused or held for checks, totaling approximately $320 million for each of Malaysia and Vietnam.

Even though it makes up a very small percentage of trade with Washington, semiconductor exports from the two nations together were valued at over $730 million in August alone.

It’s unclear if businesses are delaying shipments due to difficulties with compliance.

Requests for comments were not answered by the trade ministry of Malaysia or the industry ministry of Vietnam.

Experts from the government and business sectors in both nations stated that they were either unaware of the problem or had not heard of any concerns.

Rights organisations have denounced China’s pervasive use of internment camps and forced labour, and Washington has accused China of committing genocide against the Uyghur people. China has refuted every allegation of mistreatment.

Since the Uyghur Forced Labour Protection Act (UFLPA) was introduced in the United States, exporters are required to certify that their products are free of any component or raw material originating from Xinjiang.

(Adapted from USNews.com)