The U.S. has banned imports from BGI Group, BGI Genomics, and MGI Tech, citing allegations of forced labor in China's Xinjiang region. The Department of Homeland Security announced that U.S. Customs and Border Protection will begin barring goods from these companies starting Thursday.

The DHS stated that the companies are either sourcing materials from Xinjiang or collaborating with the regional government to "recruit, transport, transfer, harbor, or receive forced labor" involving ethnic groups in Xinjiang, including Uyghurs. Biotechnology is emerging as a new area of economic and technological competition between the U.S. and China. Last week, the Treasury Department proposed new restrictions on U.S. investments in Chinese biotechnology, artificial intelligence, and supercomputing.

BGI Group, which is based in Shenzhen, has rejected the allegations, asserting in a statement that it "has not engaged in any form of forced labor” and that it “firmly opposes all forms of forced labor.” The company holds controlling stakes in BGI Genomics and MGI Tech.

U.S. lawmakers and policymakers have expressed concerns for several years about BGI Group's alleged ties to the Chinese government and its potential access to vast genetic data, which they fear could compromise U.S. national security and commercial interests. BGI Group has consistently emphasized its private ownership and stated it does not serve patients in the U.S. nor have access to Americans' genetic data.

While legislation to ban BGI from doing business with federally funded medical providers did not pass Congress, a similar provision was enacted late last year without naming specific companies. This provision called for the compilation of a list of "biotechnology companies of concerns." The Pentagon has previously designated BGI Group, BGI Genomics, and MGI Tech as Chinese military companies, a label that carries significant reputational damage.

The DHS announcement referenced "credible information, including corporate and government reporting" that indicated BGI Group, BGI Genomics, and MGI Tech have supported genetic testing in Xinjiang. The department added that "the collection and analysis of genetic material facilitate the monitoring, surveillance, and repression of ethnic minorities by the government of the People’s Republic of China, including the abhorrent practice of forced labor."

These import restrictions are part of the Uyghur Forced Labor Prevention Act, signed into law by President Joe Biden in late 2021, following accusations of human rights abuses by Beijing against the Uyghur ethnic group and other Muslim minorities in Xinjiang. The Chinese government has denied these allegations, defending its policies in Xinjiang as measures to combat terrorism and ensure stability.

In August, the Trump administration significantly expanded the trade blacklist under the same act, adding 43 Chinese companies and bringing the total to 187 entities. Homeland Security Secretary Markwayne Mullin has stated his commitment to protecting American workers from being disadvantaged by foreign companies utilizing "slave labor."