Xinjiang Supply Chain Business Advisory

Date issued: Jul. 14 2021

TURBOFAC Commentary (397 words)


1) Advisory originally published on July 1, 2020, by four government agencies prior to any OFAC designations of persons for Xinjiang-related activities. (See for original). The advisory was updated on July 13, 2021.

In the original advisory, the specifically portion related to OFAC-administered sanctions only made reference to EO 13818 and the Global Magnitsky Human Rights Accountability Act. That was prior to OFAC’s Xinjiang-related Global Magnitsky designations, but see, adding certain Xinjiang-related persons to the SDN list, including the Xinjiang Public Security Bureau. The updated version of the advisory makes several references to EO 13959 and OFAC’s “Non-SDN Chinese Military- Industrial Complex Companies List.” At page 12, OFAC notes that EO 13959, as amended by EO 14032, “gives the Secretary of the Treasury…authority to impose certain investment-related prohibitions with respect to persons that operate or have operated in the defense and related materiel sector or the surveillance technology sector of China’s economy.” As discussed in further detail in Consolidated Comment on the Chinese Military Companies Sanctions Under the EO Issued June 3, 2021, it is not clear whether the USG plans on subjecting non-U.S. persons to quasi secondary sanctions-like designations under the authority, in EO 14032, to sanction persons deemed “to operate or have operated in the defense and related materiel sector or the surveillance technology sector of the economy of the PRC.” To the extent that this is the government’s intention, there is quite a bit to go on in this document as it relates to the government’s Xinjiang-related surveillance concerns and diligence expectations in general. See e.g. p. 14 (Due Diligence Related to Surveillance), which makes reference to Due Diligence Related to the “U.S. Department of State Guidance on Implementing the ‘UN Guiding Principles’ for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities” (

2) The due diligence-related material in the advisory will presumably figure into diligence expectations as it relates to indirect dealings with any blocked person located in Xinjiang province.