China's foreign ministry has announced sanctions against Kharon, a U.S. firm founded by former Treasury Department officials. Kharon specializes in providing data to companies regarding alleged forced labour in the Xinjiang region, aiding them in compliance with U.S. laws.

The foreign ministry stated its intention to implement "countermeasures" against Kharon and its director of investigations. This action is in response to the firm's provision of what the ministry referred to as "so-called evidence" supporting America's imposition of illegal sanctions related to Xinjiang.

Responding to the sanctions, the Los Angeles-based firm Kharon declared that it lacks any presence in China. It characterized the imposed action as "largely symbolic" and emphasized that it would not have any significant impact on its operations or its capacity to serve its clients.

In a statement, Kharon declared its commitment to serving clients and global businesses aiming to implement robust risk management programs. The company affirmed its dedication to providing research and data analytics that are objective, independent, and grounded in reliable sources.

Sanctions will extend to a former researcher affiliated with the U.S.-based Centre for Advanced Defense Studies, according to the Chinese Ministry of Foreign Affairs. The affected individuals will face entry bans into China, including Hong Kong and Macau, and the assets of Kharon located in China will be frozen, as per the ministry's announcement.

Kharon responded, stating that companies rely on its forced labour data to adhere to the Uyghur Forced Labor Prevention Act (UFLPA). Enacted into U.S. law in 2021, the UFLPA prohibits the entry of goods from listed companies originating in the Chinese region of Xinjiang unless they can substantiate that the products were not produced with or linked to forced labour.

The United States imposed restrictions on imports from three additional Chinese firms, including Sichuan Jingweida Technology Group. Kharon had previously identified this company's involvement in labor transfers in 2017, wherein thousands of workers were dispatched to various production facilities.

U.S. officials maintain the belief that Chinese authorities have established labour camps in Xinjiang for Uyghurs and other Muslim minority groups. In contrast, Beijing vehemently denies any allegations of abuse.

According to Beijing, the Xinjiang-related sanctions are based on "lies" and "false narratives." The Chinese government contends that the U.S. is actively working to undermine the stability of Xinjiang and hinder China's overall development.

Image source: Reuters