ເຜີຍແຜ່ · Laos

US Adds 3 Chinese Entities to UFLPA List: What Foreign Founders in China Need to Know

The US Department of Homeland Security added three more Chinese entities to the Uyghur Forced Labor Prevention Act (UFLPA) entity list on October 28. China's Ministry of Commerce (MOFCOM) strongly condemned the move, calling it baseless and politically motivated. For foreign founders operating or registering a company in China, this update highlights the importance of monitoring regulatory developments and ensuring compliance with both Chinese and international rules. This article summarizes the official MOFCOM statement and offers practical guidance.

US Adds 3 Chinese Entities to UFLPA Entity List

On October 28 (US Eastern Time), the US Department of Homeland Security announced the addition of three Chinese entities to the entity list under the so-called Uyghur Forced Labor Prevention Act (UFLPA). The move was raised during a regular press conference, and China's Ministry of Commerce (MOFCOM) spokesperson provided an official response on October 29, 2026.

For foreign founders who are registering a company in China or already operating here, this development is a reminder that international regulatory actions can affect supply chains and business operations. Understanding the official Chinese position and the potential implications is essential for risk management.

MOFCOM's Response: Key Points

The MOFCOM spokesperson stated that China has taken note of the US action. The spokesperson emphasized that forced labor does not exist in China, and that all ethnic groups in Xinjiang enjoy free and equal employment opportunities, with their labor rights effectively protected by law. The US measures were described as having no factual basis, and the US was accused of continuously manipulating human rights issues to practice unilateral protectionism and bullying. China strongly condemns and firmly opposes the US move.

The spokesperson further noted that the US had recently added a large number of Chinese entities to the so-called Xinjiang-related entity list. China has made solemn representations to the US and taken firm countermeasures. However, the US has continued to impose new sanctions, including adding Chinese biopharmaceutical technology companies to the list. The spokesperson said that such listing practices go against the consensus reached by the heads of state of the two countries, seriously disrupt the stability of China-US economic and trade relations, and violate humanitarian principles. The US was urged to immediately stop political manipulation and smear attacks, and to cease unreasonable suppression of Chinese enterprises. China will take necessary measures to firmly safeguard its interests.

Implications for Foreign Founders in China

While the MOFCOM statement is a political response, foreign founders should consider the practical impact on their China operations:

• Supply chain due diligence: If your company sources goods or materials from China, especially from Xinjiang or related industries, ensure your supply chain complies with applicable US laws, such as the UFLPA. Conduct regular audits and maintain transparent records.
• Regulatory monitoring: Keep abreast of both US and Chinese regulations that may affect your business. The UFLPA entity list can be updated, and Chinese countermeasures may also evolve.
• Compliance with Chinese law: As a company registered in China, you must adhere to Chinese labor laws and regulations, which prohibit forced labor and protect workers' rights. Ensure your employment practices comply with local requirements.
• Risk assessment: Evaluate potential risks to your business relationships, financing, and market access. Diversifying supply chains and maintaining open communication with partners can help mitigate disruptions.
• Legal counsel: Consult with legal experts on both US and Chinese regulations to navigate the complex landscape. This is particularly important if your business involves international trade or sensitive industries.

Practical Steps for New Founders

If you are planning to register a company in China, consider the following steps to build a resilient operation:

• Understand the regulatory environment: Research both local and international regulations that apply to your industry. China's Foreign Investment Law and various sector-specific rules govern business operations.
• Choose the right structure: Decide between a wholly foreign-owned enterprise (WFOE), joint venture, or representative office, based on your business goals and risk tolerance.
• Establish robust compliance policies: Implement internal policies that address labor rights, anti-corruption, and trade compliance. Regular training for staff is recommended.
• Stay informed: Follow official announcements from MOFCOM, US Customs and Border Protection (CBP), and other relevant agencies. Subscribe to updates from industry associations.
• Engage local experts: Work with local legal and accounting firms to ensure your registration and ongoing operations meet all requirements.

Conclusion

The US addition of three Chinese entities to the UFLPA list is part of ongoing trade tensions. China's response underscores its opposition to unilateral sanctions. For foreign founders, the key takeaway is to remain vigilant, conduct thorough due diligence, and maintain compliance with all applicable laws. By doing so, you can protect your business and contribute to stable international trade relations.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.