BGI Group and Two Affiliates Face US Import Ban

The Trump administration is blocking imports from three major Chinese biotechnology companies effective Thursday.

U.S. Customs and Border Protection will bar goods from BGI Group, BGI Genomics, and MGI Tech. The Department of Homeland Security cited allegations that the firms source materials from or work with the government in Xinjiang. Officials said the companies recruit, transport, or harbor forced labor from persecuted ethnic groups, including Uyghurs.

BGI Group is a leading developer of genetic sequencing technologies. The firm holds controlling stakes in both BGI Genomics and MGI Tech. The Pentagon previously designated all three entities as Chinese military companies. This label often carries reputational risks for firms seeking international partnerships.

China’s Ministry of Commerce rejected the ban in a statement issued Thursday morning. The ministry called the move an act of political manipulation and bullying under the guise of protecting human rights. It stated that the listings violate the spirit of humanitarianism and undermine the stability of economic and trade relations between the two nations. Beijing said it would take necessary measures to safeguard its interests.

The ban adds pressure to biotechnology as a front in the economic and tech rivalry between Washington and Beijing. Last week, the Treasury Department proposed new restrictions on U.S. investments in biotechnology, artificial intelligence, and supercomputing in countries like China. The new import blocks come under the Uyghur Forced Labor Prevention Act. President Joe Biden signed that law in late 2021 following allegations of human rights abuses in Xinjiang.

In August, the administration expanded the blacklist under the act to include 43 Chinese companies. That move brought the total number of listed entities to 187. Homeland Security Secretary Markwayne Mullin has vowed to protect American workers from being undercut by foreign companies using what he called slave labor.

BGI Group denied the allegations in a statement released Wednesday. The company said it has not engaged in any form of forced labor and firmly opposes all such practices. BGI Group has long stressed its private ownership. It stated that it does not serve patients in the United States and has no access to Americans' genetic data.

U.S. lawmakers have watched BGI Group for several years. They worry that its ties to the Chinese government and access to massive genetic data could hurt national security. Congress passed a provision at the end of last year asking for a list of biotechnology companies of concern, though it did not name specific firms. The Pentagon’s designation of the three companies as Chinese military entities further complicates their standing in the U.S. market.

The trade action precedes an expected meeting next month between Chinese leader Xi Jinping and President Donald Trump in Shenzhen, where BGI Group is based. Xi is also expected to travel to Florida in December for the Group of 20 leaders summit. That trip would mark a fourth meeting between the two leaders this year as they work to maintain stability during a trade truce.