US prepares orders banning cotton, tomato imports from China's Xinjiang over forced labor – Reuters

A spokesman from the US Customs and Border Protection (CBP) confirmed early Wednesday, the officials are ready with orders to suspend imports of cotton and tomato products from western China's Xinjiang province over accusations about forced labor.

Key takeaways

“The Trump administration announcement of the actions, initially expected on Tuesday, has been put off until later this week because of scheduling issues.”

CBP Executive Assistant Commissioner Brenda Smith said, "we have reasonable but not conclusive evidence that there is a risk of forced labor in supply chains related to cotton textiles and tomatoes coming out of Xinjiang. We will continue to work our investigations to fill in those gaps."

In a draft announcement seen by Reuters, the CBP said it identified forced-labor indicators involving the cotton, textile and tomato supply chains "including debt bondage, unfree movement, isolation, intimidation and threats, withholding of wages, and abusive working and living conditions."

“The proposed CBP orders would block imports of products made at the Lop County Industrial Park as well as the Lop County No. 4 Vocational Skills Education and Training Center. The moves follow the detention on July 1 of hair extensions and other goods from the Lop County Meixin Hair Product Co.”

“The CBP orders would also block imports of computer parts made by the Hefei Bitland Information Technology Co Ltd, based in Anhui, China.”

Market reaction

The above headlines have little to no impact on the markets, although could add to the ongoing US-Sino tensions.

At the press time, AUD/USD trades better bid around 0.7220, following a dip to ten-day lows of 0.7193. The S&P 500 futures turn positive despite the news that the AstraZeneca coronavirus vaccine trial has been put on the hold due to safety concerns.