Author:Wang Feng, Dai Menghao(Regulatory & Compliance)

On 23 December 2021, U.S. President Joe Biden signed the so-called “compromised” version of the Uyghur Forced Labor Prevention Act (the “UFLPA” or “Act”) introduced in Congress into law. The compromised version, based on the original Senate bill (S.65), has retained the main contents of the original version despite certain deletions and adjustments. The UFLPA tightens restrictions on the importation into the United States of goods originating in the Xinjiang Uyghur Autonomous Region of China (“Xinjiang”) or by entities operating business involving Xinjiang, and grants the United States Government the authority to impose further restrictions on such entities. The Act damages China’s sovereignty and is strongly opposed by the Chinese government. It is foreseeable, however, that the measures in the Act will have a significant impact on the existing international supply chains and cross-border trade.