The United States has banned products that are connected to supply chains in Xinjiang, China, due to concerns of human rights abuses against Uyghur Muslims in the region. In 2020, the US Customs and Border Protection (CBP) issued Withhold Release Orders (WROs) against certain products originating from Xinjiang, including cotton, tomato products, and hair products, to prevent the import of goods produced with forced labor. The US has also imposed sanctions on Chinese entities and individuals involved in the human rights abuses in Xinjiang, including the Xinjiang Production and Construction Corps and the Xinjiang Public Security Bureau. Companies must ensure that their supply chains are free from forced labor and comply with the WROs and sanctions regulations to avoid legal and reputational risks.

Companies must comply with various regulations when engaging with sanctioned suppliers in their supply chain. In the United States, the Office of Foreign Assets Control (OFAC) administers and enforces economic and trade sanctions based on US foreign policy and national security goals. The OFAC has published guidance for companies on compliance with sanctions laws and recommends that companies conduct due diligence on their suppliers and monitor their activities. The European Union also imposes sanctions on individuals and entities, and companies must comply with the EU's sanctions regulations. The UK's Office of Financial Sanctions Implementation (OFSI) administers and enforces financial sanctions, and companies must comply with UK sanctions laws. In addition, the United Nations imposes sanctions on countries and individuals, and companies must comply with UN sanctions regulations. Overall, companies must be aware of and comply with the relevant sanctions laws and regulations in their jurisdictions and implement effective compliance programs to mitigate legal hazards.