The United States government has banned steel imports from one of the subsidiaries of state-owned steel giant China Baowu Group on Thursday over allegations of forced labor. This is the first time a steel company has been included, the government said in a statement.
“Effective October 3, 2024, U.S. Customs and Border Protection (CBP) will apply a rebuttable presumption that goods produced by Baowu Group Xinjiang Bayi Iron and Steel Co., Ltd. and Changzhou Guanghui Food Ingredients Co., Ltd. will be prohibited from entering the United States. This is the first time steel and aspartame companies have been added to the UFLPA Entity List,” the US Department of Homeland Security said in a press release.
Baowu Group Xinjiang Bayi Iron and Steel is a subsidiary of the largest steel producer in the world: China Baowu Group. The company, according to the World Steel Association, produced more than 130 million metric tons (mt) of liquid steel in 2023, 91 percent more than the second largest in the world: ArcelorMittal.
The Chinese company Baowu Group alone produces more steel than six countries combined in the World Steel Association Top 15: Iran, Italy, Vietnam, Taiwan, Indonesia and Mexico.
“The Uyghur Forced Labor Prevention Act is the Biden-Harris Administration’s most powerful tool to combat forced labor and hold its perpetrators to account,” said Secretary of Homeland Security Alejandro Mayorkas.
The steel company accused of using forced labor is located in the Xinjiang region, in the far west of China. The companies involved have to prove that they are exempt from the use of forced labor in order to export to the United States.
The accused steel company has a production capacity of 10 million metric tons per year. Its products include rebar, wire rod, high-grade steel, commercial steel sections, hot-rolled sheet (HRC), cold-rolled sheet (CRC), color-coated sheet and galvanized sheet, steel plates, etc. It also produces iron ore.