Major supply chains including Apple Inc., Ralph Lauren Corp. and Tommy Hilfiger are getting caught up in the U.S. effort to punish human-rights abuses in China, according to The Wall Street Journal. The addition of 11 Chinese companies to a blacklist of entities Washington says are linked to abuses of the Uighur minority group could further a reordering of supply chains that provide goods for American consumers.
The blacklistings illustrate the growing risks to U.S. companies with extensive and often opaque supply chains in China. American exporters and importers will face growing compliance burdens and many may shift away from doing business with companies across the targeted region, analysts say.
In another sign of rising tensions between the two countries, the U.S. on Wednesday ordered China to close its consulate in Houston, Texas, by Friday following clashes over trade, BBC News reported.
Timely, incisive articles delivered directly to your inbox.