On July 31, 2026, the US Department of Homeland Security added 43 Chinese companies to the so-called Uyghur Forced Labor Prevention Act (UFLPA) entity list, with a significant number being textile and apparel firms. This marks the largest unilateral action since the act's implementation, directly impacting China's textile export outlook. China's textile and apparel exports account for about one-third of the global total, and Xinjiang produces about one-fifth of the world's cotton. This expansion signals a new round of turbulence in global supply chains.
Background
This US action is not isolated. Since the UFLPA took effect in 2021, Washington has repeatedly restricted Xinjiang cotton products and related companies, and encouraged some international brands to boycott Xinjiang cotton. On August 3, the China National Textile and Apparel Council (CNTAC) issued a stern statement refuting the so-called 'forced labor' allegations, noting that cotton cultivation and harvesting in Xinjiang are highly mechanized, with machine-picked cotton exceeding 90%, and textile manufacturing has internationally leading digital and intelligent levels. The Xinjiang Textile Industry Association published social responsibility reports in January 2021 and August 2023, presenting real labor conditions based on surveys.
On August 1, the Ministry of Commerce spokesperson responded that the US practice has no factual basis and is typical economic coercion. From an industry perspective, the US measures not only harm the legitimate interests of Chinese companies but also disrupt global industrial and supply chain stability. CNTAC emphasized that the US politicizes and instrumentalizes human rights to unjustifiably suppress the normal development of Chinese textile enterprises, violating fair trade principles and interfering with consumers' right to choose quality products.
Industry Impact
The expansion of the list affects the textile industry on multiple levels. In the short term, listed companies face direct restrictions on exports to the US, and related orders may shift to alternative production bases in Southeast Asia or India. However, in the medium and long term, 'de-Chinaization' of global textile supply chains is unrealistic—China possesses a complete textile value chain, efficient logistics, and a vast domestic market that are hard to replace. With Xinjiang cotton accounting for one-fifth of global production, continued US pressure could cause global cotton price fluctuations, affecting downstream fabric and apparel procurement costs.
For buyers, this move increases supply chain compliance risks. International brands that continue to purchase Xinjiang cotton or cooperate with listed companies may face US legal sanctions, forcing buyers to reassess supplier structures. However, CNTAC calls on global brands to respect the facts of Xinjiang's development and prevent commercial activities from being hijacked by politics. In fact, more international brands are realizing that boycotting Xinjiang cotton not only harms Chinese suppliers but also damages their own market image and sales in China.
For foreign trade enterprises, this event accelerates the industry's 'dual circulation' strategy. Companies facing export restrictions to the US are actively exploring markets along the Belt and Road, the EU, Japan, and South Korea, while also tapping into the domestic market of 1.4 billion consumers. CNTAC explicitly supports government countermeasures and pledges to protect corporate interests, providing policy support for the industry.