The Trump administration said it is blocking shipments by Chinese biotech company BGI Group and its affiliates, alleging ties to forced labour in Xinjiang, a move China condemned as 'political manipulation' and 'bullying.'
Starting Thursday, U.S. Customs and Border Protection will bar goods by BGI Group, known for genetic sequencing, as well as BGI Genomics and MGI Tech. The Department of Homeland Security said the companies are either sourcing materials from Xinjiang or working with the regional government to recruit, transport, transfer, harbour or receive forced labour of members of persecuted ethnic groups, including Uyghurs.
BGI Group rejected the allegations, stating it has not engaged in any form of forced labour and firmly opposes all forms of forced labour. China's Ministry of Commerce said the listings run counter to the consensus reached by the two countries' heads of state, seriously undermine the stability of China-U.S. economic and trade relations, and violate the spirit of humanitarianism. It said China will take necessary measures to firmly safeguard its interests.
The action adds BGI to a trade blacklist under the Uyghur Forced Labour Prevention Act, which President Joe Biden signed in 2021 following allegations of human rights abuses in Xinjiang. BGI has long faced U.S. national security concerns over its alleged ties to the Chinese government and access to genetic data, though the company stresses it is privately owned, does not serve patients in the U.S. and has no access to Americans' genetic data. The Pentagon has labelled BGI Group, BGI Genomics and MGI Tech as Chinese military companies.
The ban precedes an expected meeting next month between U.S. President Donald Trump and Chinese leader Xi Jinping in Shenzhen, where BGI is based, with a possible further meeting at the Group of 20 leaders summit in Florida in December. In August, the Trump administration expanded the blacklist to include 43 Chinese companies, for a total of 187 entities.
Analysis
Why This Matters
- The ban escalates U.S.-China tensions in biotechnology, a sector seen as a new front in economic and tech competition.
- It targets a major genetic sequencing company, raising concerns about data privacy and national security.
- The action may complicate upcoming high-level meetings between Presidents Trump and Xi.
Background
BGI Group is a Chinese biotech company known for genetic sequencing. For several years, U.S. lawmakers and policymakers have voiced concern over its alleged ties to the Chinese government and access to massive genetic data. The company has long stressed its private ownership and said it does not serve patients in the U.S. nor have access to Americans' genetic data. The Uyghur Forced Labour Prevention Act, signed into law in 2021, allows the U.S. to block imports from Xinjiang over forced labour allegations, which Beijing denies.
Key Perspectives
Trump administration: says the companies are linked to forced labour in Xinjiang, citing credible information including corporate and government reporting that they supported genetic testing in the region. DHS said the collection of genetic material facilitates monitoring, surveillance and repression of ethnic minorities.
BGI Group: rejects all allegations of forced labour, saying it has not engaged in any form of forced labour and firmly opposes it.
China's Ministry of Commerce: calls the ban political manipulation and bullying under the guise of protecting human rights, and says it undermines trade stability and humanitarian spirit.
What to Watch
- The outcome of the expected Xi-Trump meeting in Shenzhen next month and whether it affects trade tensions.
- Possible further expansions of the UFLPA blacklist or new U.S. investment restrictions on Chinese biotech.
- China's retaliatory measures, which the Ministry of Commerce has signalled it will take.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedThe Trump administration is blocking shipments by BGI Group and its affiliates over alleged forced-labour ties in Xinjiang.Fortune | FORTUNE: “The Trump administration said Wednesday that it is blocking shipments by the Chinese biotech company BGI Group and its affiliates, alleging ties to forced labor in China’s far-west ethnic region of Xinjiang.”
- SupportedChina called the ban “political manipulation” and “bullying.”Fortune | FORTUNE: “China said it rejected any accusation of forced labor and called the ban an act of “political manipulation” and “bullying under the guise of ‘protecting human rights.’””
- SupportedBiotechnology is becoming another front in U.S.-China competition.Fortune | FORTUNE: “Adding the companies to a trade blacklist comes as biotechnology is emerging as another front in the economic and tech competition between the U.S. and China.”
- SupportedStarting Thursday, Customs and Border Protection will bar goods by BGI Group, BGI Genomics and MGI Tech.Fortune | FORTUNE: “Starting Thursday, U.S. Customs and Border Protection will bar goods by BGI Group, a major biotech company known for its genetic sequencing technologies, as well as BGI Genomics and MGI Tech.”
- SupportedDHS said the companies are sourcing materials from Xinjiang or working with its regional government in connection with forced labour involving persecuted ethnic groups, including Uyghurs.Fortune | FORTUNE: “The Department of Homeland Security said the companies are either sourcing materials from Xinjiang or working with the regional government to “recruit, transport, transfer, harbor, or receive forced labor” of members of persecuted ethnic groups in Xinjiang, including Uyghurs.”
- SupportedBGI Group denied engaging in forced labour and said it opposes all forms of it.Fortune | FORTUNE: “BGI Group rejected the allegations, saying in a statement Wednesday that it “has not engaged in any form of forced labor.” It added that “we firmly oppose all forms of forced labor.””
- SupportedChina’s Ministry of Commerce said the listings run counter to the two countries’ leaders’ consensus, undermine trade relations and violate humanitarianism, and said China would take necessary measures to safeguard its interests.Fortune | FORTUNE: ““These listings run counter to the consensus reached by the two countries’ heads of state, seriously undermine the stability of China-U.S. economic and trade relations, and violate the spirit of humanitarianism,” said China’s Ministry of Commerce in a Thursday morning statement.”
- SupportedThe Uyghur Forced Labor Prevention Act was signed by Joe Biden in 2021 following allegations of human-rights abuses in Xinjiang.Fortune | FORTUNE: “The new restrictions are part of the Uyghur Forced Labor Prevention Act , which then-President Joe Biden signed into law at the end of 2021 following allegations of human rights abuses by Beijing against members of the ethnic Uyghur group and other Muslim minorities in Xinjiang.”
- SupportedBGI has faced U.S. national-security concerns over alleged ties to the Chinese government and access to genetic data; the company says it is privately owned, does not serve U.S. patients and has no access to Americans’ genetic data.Fortune | FORTUNE: “BGI Group has for several years been a concern to U.S. lawmakers and policymakers , who are worried that its alleged ties to the Chinese government and access to massive genetic data could hurt U.S. national security and commercial interests. The company has long stressed its private ownership and said it does not serve patients in the U.S. and has no access to Americans’ genetic data.”
- SupportedThe Pentagon has labelled BGI Group, BGI Genomics and MGI Tech as Chinese military companies.Fortune | FORTUNE: “The Pentagon has labeled BGI Group, BGI Genomics and MGI Tech as Chinese military companies , a designation that carries reputational damage.”
- SupportedAn expected meeting between Trump and Xi is due next month in Shenzhen, where BGI is based; a further meeting may take place at the G20 summit in Florida in December.Fortune | FORTUNE: “The latest trade actions precede an expected meeting next month between Chinese leader Xi Jinping and U.S. President Donald Trump in the southern Chinese city of Shenzhen, where BGI Group is based. Xi could then travel to Florida in December for the Group of 20 leaders summit”
- SupportedIn August, the Trump administration expanded the blacklist to include 43 Chinese companies, bringing the total to 187 entities.Fortune | FORTUNE: “In August, the Trump administration drastically expanded the blacklist under that law to include 43 Chinese companies, for a total of 187 entities.”