The Trump administration added BGI, a major Chinese genomics company, to a trade blacklist prohibiting goods made with forced labor in China. U.S. officials allege BGI has close ties to Beijing and access to genetic data, posing a threat to national security. The move specifically links BGI subsidiaries to genetic analyses of Uyghurs and other Muslim minorities in the Xinjiang region. BGI denies the allegations, stating its work is for civilian and scientific purposes only.
The company sells DNA sequencing machines and operates labs for academic researchers and drug companies globally. Despite having a laboratory in San Jose, Calif., and offices in Massachusetts, BGI does not directly market its products in the U.S. The action is likely to be viewed as an affront by the Chinese government, which has recently engaged in tit-for-tat trade actions with the United States. Beyond BGI, the administration has escalated scrutiny of China's biotechnology sector with proposed rules to regulate investments.
The Department of Defense deems BGI and several subsidiaries as "Chinese military companies operating in the United States." In response, BGI stated it is not controlled by the Chinese government or military. The restriction also applies to BGI Genomics and MGI, a subsidiary spun off from BGI. This past summer, the administration added 43 Chinese companies to the forced labor list across industries like aluminum and apparel.
China denies the presence of forced labor in Xinjiang, while the U.S. government asserts the use of mass detentions and coercive practices. For years, several BGI subsidiaries have also been on a Commerce Department list restricting access to U.S. technologies.
Source: New York Times Business · Summarized by HeadlinesBriefing