Ajay Srivastava, founding father of the World Commerce Analysis Initiative; File |Picture Credit score: Bijoy Ghosh
Suppose tank GTRI introduced on Sunday (March 15, 2026) that the second commerce investigation launched by america into suspected pressured labor practices throughout 60 nations, together with India and China, is predicted to put explicit scrutiny on the Chinese language authorities amid allegations of pressured labor in Xinjiang.
The World Commerce Analysis Initiative (GTRI) stated India’s exports of photo voltaic panels, electronics and clothes to the US might additionally come beneath elevated scrutiny beneath this new US investigation into pressured labor in world provide chains.
On March 12, the Workplace of america Commerce Consultant (USTR) launched a Part 301 investigation involving 60 nations. That is the second Part 301 investigation this month.
The investigation will decide whether or not the legal guidelines, insurance policies, and practices of those nations associated to the imposition and failure to successfully implement prohibitions on imports of products produced with pressured labor are unreasonable or discriminatory and burden or limit U.S. commerce.
The investigation will look at whether or not nations enable merchandise produced with pressured labor to enter world provide chains.
It could contemplate two conditions: whether or not pressured labor is used straight in manufacturing, and whether or not nations import supplies produced by pressured labor from different nations and use them within the manufacturing of products which might be later exported to america.
“The main target will possible be on merchandise utilizing imported supplies from China which might be suspected to have been made with pressured labor. If such supplies are utilized in items exported from India to the US, these shipments could also be topic to investigation,” stated GTRI founder Ajay Srivastava.
He stated america argues that if these items enter worldwide commerce via third nations, they’ll nonetheless distort markets by reducing manufacturing prices and decreasing the capability of formal producers.
The Part 301 course of sometimes entails public session, proof gathering, and public hearings earlier than the USTR determines whether or not motion is important.
If an investigation concludes {that a} nation’s insurance policies are “unreasonable or discriminatory” and limit U.S. commerce, the U.S. authorities might impose tariffs or different commerce restrictions on imports from the nation.
He added that China is prone to be on the heart of the investigation due to long-standing accusations in opposition to Uyghurs and different Muslim minorities in Xinjiang.
The Chinese language authorities denies this declare, saying this system is aimed toward offering employment and vocational coaching.
As such, some Chinese language merchandise, notably cotton and cotton textiles, have been flagged as excessive danger in world provide chains, as Xinjiang produces about 20% of the world’s cotton and polysilicon utilized in photo voltaic panels.
He stated India prohibits pressured labor beneath the Bonded Labor System (Abolition) Act, 1976, however a lot of India’s export industries depend upon imported intermediate inputs from China and will nonetheless be topic to investigation.
“For instance, India’s photo voltaic panel exports to the US typically depend on imported polysilicon and photo voltaic cells sourced from Chinese language provide chains, a few of which have come beneath intense scrutiny for alleged pressured labor in Xinjiang,” Srivastava stated.
Equally, electronics manufacturing in India depends closely on Chinese language-made elements, cables, and subassemblies, which might be topic to investigation if they’re produced in areas linked to labor migration applications.
Within the textile and clothes sector, Indian producers regularly use yarns and materials made in China and could also be topic to stricter traceability guidelines if they’re linked to cotton produced in Xinjiang, he stated.
On March 11, USTR introduced its first Part 301 investigation analyzing whether or not the commercial insurance policies of 16 nations, together with India and China, are creating extra manufacturing capability that harms U.S. business.
