August 3, 2020
New Sanctions Threaten Cotton Supply Chains (From Sandler, Travis & Rosenberg Trade Report)
The Office of Foreign Assets Control placed Xinjiang Production and Construction Corporation on its Specially Designated Nationals List on July 31. XPCC’s placement on this list means that all U.S. entities or non-U.S. entities subject to U.S. jurisdiction (covered persons) are now banned from engaging, directly or indirectly, with XPCC without a license from OFAC.
XPCC was added to the SDN List for serious rights abuses against ethnic minorities in China’s Xinjiang Uyghur Autonomous Region. XPCC engages in cotton farming and sales in XUAR for certain types of cotton. China accounts for 20 percent of all the cotton in the world and XUAR accounts for 80 percent of China’s cotton. This production represents 50 percent of global spinning capacity. For more info, please go to
New Sanctions and Cotton Supply Chains (From Sandler, Travis & Rosenberg Trade Report)
The Office of Foreign Assets Control placed China’s Xinjiang Production and Construction Corporation on its Specially Designated Nationals List…XPCC engages in cotton farming and sales in XUAR for certain types of cotton. China accounts for 20 percent of all the cotton in the world and XUAR accounts for 80 percent of China’s cotton. This production represents 50 percent of global spinning capacity. OFAC may consider any transaction by a covered person that directly or indirectly benefits XPCC as a violation of these sanctions, including apparel-related transactions made anywhere in the world that contain XPCC cotton. For more info, please go to