Update – Esquel unit on Xinjiang entity list forces closure of two factories

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In July, Esquel sued the U.S. government after claiming to have been wronged by the placement of its subsidiary Changji Esquel Textile Co., on the U.S. Entity List, a list of 11 Chinese entities allegedly involved in human rights abuses. in Xinjiang, three of which were textile and clothing factories.

The Hong Kong-based textiles and clothing maker said the listing falsely implicated Changji Esquel in the use of forced labor in China’s Xinjiang region, a finding that “contradicts the facts, including audits carried out by several world-class independent third-party auditors utilizing an internationally recognized industry. standards such as the SMETA standard, a widely respected social audit format ”.

According to an article in the South China Morning PostOn Wednesday, October 6, U.S. District Judge Reggie B. Walton in Washington ruled that Esquel would likely not be successful in his case against the department because he failed to show that Commerce acted on the- beyond its legal authority.

In an email to Just Style, a spokesperson for Esquel said he plans to appeal the ruling and move forward with the litigation.

“Esquel continues to suffer substantial, continuing and irreparable harm as a result of Changji Esquel’s erroneous listing on the US Entity List. Within a year of Changji Esquel’s erroneous listing, Esquel lost a significant portion of his annual income totaling hundreds of millions of dollars. This precipitous loss of activity resulted in the closure of two factories in Mauritius and the loss of more than 7,000 high-quality jobs worldwide.

“This decision does not change the basics: no Esquel company has ever used, or will ever use, forced labor. We intend to move forward with litigation to end Changji Esquel’s erroneous listing.

“We will also continue to work in good faith outside of disputes with the Ministry of Commerce to meet the conditions set out in the government’s unanimous vote on July 31 to remove Changji Esquel. Our goal from the very beginning has been to correct the case and remove Changji Esquel from the entity list, whether through voluntary action by the Ministry of Commerce or, if necessary, through litigation. ”

In a statement at the end of August, Esquel said the The US Department of Commerce and the group failed to reach a resolution “despite good faith efforts” because the American government “is not in a position to provide a concrete timetable according to which it could finally remove the CJE from the list of entities”.

“In the meantime, Esquel has suffered substantial, ongoing and irreparable harm that has continued and even worsened over the past month. Specifically, the U.S. Customs and Border Protection (CBP) detained and began to exclude from entry a large number of shipments originating from Esquel factories outside of China, forcing potentially Esquel to default on its commitments with customers and causing permanent economic and reputational damage. This increases the need for emergency relief. Esquel has no choice but to resume his legal action.


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