The Trump administration announced Wednesday that it will block imports from Chinese biotechnology firm BGI Group and two of its affiliates, citing alleged links to forced labor in Xinjiang, China's far-western ethnic region.

Beginning Thursday, U.S. Customs and Border Protection will stop goods from BGI Group, a major player in genetic sequencing, along with BGI Genomics and MGI Tech. According to the Department of Homeland Security, the companies either source materials from Xinjiang or work with the regional government in the recruitment and movement of forced labor drawn from persecuted ethnic groups there, including Uyghurs. DHS said BGI Group holds controlling stakes in both affiliates.

DHS cites genetic testing in Xinjiang

In its announcement, DHS said credible information, including corporate and government reports, shows the three companies have supported genetic testing in Xinjiang. The department said the collection and analysis of genetic material helps Chinese authorities monitor, surveil and repress ethnic minorities, including through forced labor.

The action falls under the Uyghur Forced Labor Prevention Act, which President Joe Biden signed into law at the end of 2021 in response to allegations of human rights abuses against Uyghurs and other Muslim minorities in Xinjiang. In August, the Trump administration added 43 Chinese companies to the law's blacklist, bringing the total to 187 entities. Homeland Security Secretary Markwayne Mullin has pledged to protect American workers from being undercut by foreign companies that rely on forced labor.

Beijing and BGI push back

China rejected the forced labor accusations and denounced the ban as political manipulation and bullying carried out in the name of human rights. In a statement Thursday morning, China's Ministry of Commerce said the listings contradict the consensus reached by the two countries' leaders, threaten the stability of bilateral trade relations, and that China will take necessary measures to protect its interests. Beijing has long dismissed the Xinjiang allegations as false, describing its policies in the region as counterterrorism and stability efforts.

BGI Group also denied the claims, stating Wednesday that it "has not engaged in any form of forced labor" and opposes forced labor in all forms.

Biotech becomes a new front

The move highlights biotechnology as a growing area of economic and technological rivalry between Washington and Beijing. Last week, the Treasury Department proposed new limits on U.S. investment in biotechnology, artificial intelligence and supercomputing in countries such as China.

BGI Group has drawn scrutiny from U.S. lawmakers and officials for years over concerns that its alleged government ties and access to vast amounts of genetic data could threaten U.S. national security and commercial interests. The company has emphasized that it is privately owned, does not serve patients in the United States and has no access to Americans' genetic data. The Pentagon has designated BGI Group, BGI Genomics and MGI Tech as Chinese military companies.

Congress did not pass a bill that would have barred BGI from working with federally funded medical providers, but late last year it approved a similar measure that did not name specific companies and instead called for a list of biotechnology companies of concern.

The latest trade action comes ahead of an expected meeting next month between Chinese leader Xi Jinping and President Donald Trump in Shenzhen, where BGI Group is headquartered. Xi may also travel to Florida in December for the Group of 20 leaders summit, which would mark a fourth meeting between the two leaders this year as they seek to keep relations steady under a trade truce.