U.S. Crackdown on Forced China Labor Risks Supply Chains Snarls

Companies are facing fresh supply chain challenges in responding to a new U.S. law that requires proof that their imported goods aren’t linked to forced labor in China, particularly in the Xinjiang region.

The Uyghur Forced Labor Prevention Act adds a presumption under the U.S. Tariff Act that goods sourced from or produced in Xinjiang—home to many of China’s Uyghur and other Muslim minority populations—are made with forced labor. To import products from the region, companies will have to document that they aren’t sourced from forced labor.

As U.S. Customs and Border Protection officials and activist investors look on, companies ...