US Customs blocks BGI Group shipments over Xinjiang labor claims

American importers and laboratories will face new hurdles starting Thursday when U.S. Customs and Border Protection begins blocking goods from three major Chinese biotechnology companies. The ban targets BGI Group, BGI Genomics, and MGI Tech, which are known for genetic sequencing technologies used in medical research and testing. The move effectively prevents these firms from selling their equipment and services to U.S. buyers through standard trade channels.

The Department of Homeland Security (DHS) announced the listing on Wednesday, stating that the companies are sourcing materials from Xinjiang or working with the regional government to recruit and transport forced labor. DHS identified specific ethnic groups in the region, including Uyghurs, as being subject to these practices. The agency cited corporate and government reporting to support its finding that the firms have supported genetic testing in the area.

This action places the companies under the Uyghur Forced Labor Prevention Act, a law signed by former President Joe Biden in late 2021. The statute presumes that goods made in Xinjiang are produced with forced labor and bans their entry into the United States unless the importer can prove otherwise. DHS Secretary Markwayne Mullin noted that the administration aims to protect American workers from competition with foreign firms using what he called "slave labor."

China responded sharply to the announcement, rejecting the accusations of forced labor. The Ministry of Commerce described the ban as "political manipulation" and "bullying under the guise of 'protecting human rights.'" In a statement issued Thursday morning, the ministry said the listings undermine the stability of economic relations between the two nations and violate the spirit of humanitarianism. Beijing asserted it would take necessary measures to safeguard its interests.

BGI Group, which holds controlling stakes in the other two listed entities, issued a statement on Wednesday rejecting the allegations. The company said it has not engaged in any form of forced labor and firmly opposes all such practices. The firm has long emphasized its private ownership structure and noted that it does not serve patients in the United States or have access to American genetic data.

The ban coincides with other U.S. moves to restrict economic ties with China in the tech sector. The Treasury Department proposed new restrictions on U.S. investments in Chinese biotechnology, artificial intelligence, and supercomputing last week. The Pentagon has also designated all three companies as Chinese military entities, a label that carries reputational weight in procurement and partnership decisions.

These trade measures come as President Donald Trump and Chinese leader Xi Jinping prepare to meet in Shenzhen next month. BGI Group is based in that city. The two leaders are expected to hold talks to maintain stability during a current trade truce. A follow-up meeting in Florida is also planned for December as part of the Group of 20 leaders summit.

Congress passed a provision at the end of last year requiring the compilation of a list of biotechnology companies of concern, without naming specific firms. The current DHS action fulfills that mandate for these three entities, adding them to a growing blacklist that expanded to include 43 Chinese companies in August, bringing the total number of listed entities to 187.