UFLPA Comes Into Effect - Impacted Industries and Potential Risks

With the enforcement of the Uyghur Forced Labor Prevention Act (UFLPA), the Department of Homeland Security (DHS) has targeted four high-risk sectors: apparel, cotton, tomatoes, and polysilicon. Both the textile and apparel industries are being severely impacted as the UFLPA act is disrupting around 20% of the global cotton supply. In addition, China produces 90% of the polysilicon used in the manufacturing industry. As XUAR-sourced polysilicon is heavily used in US-bound solar panels, the renewable energy industry may be impacted if they are not able to find alternative sources. Several industry giants in the manufacturing, agriculture, healthcare, PVC, and more being impacted and linked to the Uyghur Forced Labor Act at a legal, economic, and reputational standpoint.