On July 20, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced that 11 Chinese companies would be added to the “Entity List.”
The 11 Chinese companies include three textile companies: Changji Esquel Textile, Hotan Taida Clothing, and Nanjing Xinyi Cotton Textile Printing and Dyeing.
▲ (Screenshot of the U.S. Department of Commerce website)
Chanji Esquel Textile was founded in 2009 by Esquel Group.
Esquel Group produces clothing for brands such as Ralph Lauren, Tommy Hilfiger and Hugo Boss. On April 24, 2020, Esquel Group issued an announcement: Esquel opposes the use of forced labor.
▲ (from Esquel official website)
The “Entity List” is a trade used by the U.S. Department of Commerce to restrict exports to foreign entities “Blacklist”, companies included in the list will have difficulty in continuing foreign trade cooperation with American companies.
The Entity List is a list used by the Bank to restrict the export, re-export and (domestic) transfer of items subject to the Export Administration Regulations (EAR) to persons (individuals) who reasonably believe involve or pose a significant risk , organizations, companies) that engage in activities contrary to U.S. national security or foreign policy interests. Additional license requirements apply to the export, re-export and (domestic) transfer of items subject to the EAR to a listed entity, and the availability of most license exceptions is limited.
The U.S. Department of Commerce “testified” that among the 11 companies added to the U.S. Entity List, 9 Chinese companies were accused of involving “forced labor” against ethnic minorities in Xinjiang. In addition, two Chinese companies were included in the “Entity List” on the grounds that they were “suspected” of assisting in collecting genes from ethnic minority groups and conducting DNA genetic analysis.
The specific list of Chinese companies that have been listed on the entity list by the U.S. Department of Commerce due to their involvement in “forced labor” is as follows: Changji Esquel Textile Co., Ltd., Hefei Baolongda Information Technology Co., Ltd., Hefei Meiling Co., Ltd., Hotan Haolin Hair Accessories Co., Ltd., Hotan Taida Clothing Co., Ltd., Jinchuang Group, Nanchang O-Film Tech, Nanjing Synergy Textiles Co. Ltd. and Tanyuan Technology (Tanyuan Technology Co. Ltd.).
Two Chinese companies that were sanctioned for “suspected” of assisting in the collection of genes from ethnic minority groups and conducting DNA genetic analysis include Xinjiang Silk Road BGI Technology Co., Ltd. and Beijing Liuhe BGI Technology Co., Ltd. .
On May 22, Huafu’s subsidiary Aksu Huafu Colored Textile Co., Ltd. (hereinafter referred to as “Aksu Huafu”) was included in the entity list by the U.S. Department of Commerce on May 22, 2020. </p
