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Esquel to sue the US due to China blacklist inclusion

Jul 09, 2021
Esquel to sue the US due to China blacklist inclusion

Hong Kong

Hong Kong apparel giant Esquel Group is reportedly planning to sue the US government for putting a false allegation of erroneous blacklisting of a subsidiary in China’s Xinjiang region. The US government has said that the group has made use of forced labour in China’s Xinjiang region on which the group has said that there is no supporting evidence to prove this allegation.

The American government had declared Xiaomi a Communist Chinese Military Company and hence it has been de-listed from the US exchanges. Esquel Group's suit came after Xiaomi sued the US government and it agreed to remove Xiaomi from the blacklist.

As per the group, there have been many audits by third-party independent auditors using internationally recognized industry standards that involved site visits, which further led to interviews with Uyghur workers in Xinjiang factories. As per the company, the audits found no evidence of forced labour. It was also noticed that the Changji Esquel facility is automated and technologically advanced, and requires highly skilled workers. All this is technically the reverse of a business model that relies on underpaid or forced labour.

Esquel Group is one of those companies that has been targeted due to tensions between the US and China over issues related to human rights, span trade, and territorial disputes.

Source – The Straits Times

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