Biden Administration is planning to add 10 more Chinese companies to the blacklist over alleged "human rights abuse" issues in Xinjiang.
The United States accuses China of human rights abuses against China's ethnic minority of Uyghur Muslims in the Xinjiang region. The US accuses China of labor exploitation and high-tech surveillance. However, there are not many substantial pieces of evidence to back American claims.
The U.S. Commerce Department action will follow its announcement last month adding five other companies and other Chinese entities to the blacklist over allegations of forced labor in the far western region of China.
The additions to Commerce Department's Entity List are part of the Biden administration's efforts to hold China accountable for human rights violations, the sources said.
China dismisses accusations of genocide and forced labor in Xinjiang and says its policies are necessary to stamp out separatists and religious extremists who plotted attacks and stirred up tension between mostly Muslim ethnic Uyghurs and Han, China's largest ethnic group.
"The Chinese side will take all necessary measures to safeguard the legitimate rights and interests of Chinese companies and rejects the U.S. attempts to interfere in China's internal affairs," said foreign ministry spokesman Wang Wenbin on Friday.
It has not been yet clear which firms are going to be sanctioned. However, according to sources, some other companies in other countries are also going to be blacklisted.
White House has not commented on this issue as of now.