Exclusive | Hong Kong textile firm Esquel to keep its Xinjiang factories open despite US sanctions threat over ‘forced labour’ accusations

Name: US House of Representatives sends Uygur Human Rights Policy Act to Trump’s desk for approval
Uploaded: 2020-07-12T22:30:04.000Z
Duration: 3 min 21 s
Description: US House of Representatives sends Uygur Human Rights Policy Act to Trump’s desk for approval

Esquel is one of six companies singled out for potential sanctions in US draft legislation regarding forced labour in Xinjiang

The Hong Kong textile firm will defend itself and keep factories running, CEO says, while China retaliates with sanctions on US politicians

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John Cheh, Esquel’s vice-chairman and chief executive, said the company does not use forced labour and would keep its plants operating in Xinjiang despite the threat of US sanctions. Photo: Nora Tam

Peggy SitoandChad Bray

Published: 6:30am, 13 Jul 2020Updated: 5:50pm, 13 Jul 2020

The coronavirus pandemic caught Esquel and many of its global fashion rivals off guard this year, but the 42-year-old Hong Kong-based textile manufacturer is facing an even bigger challenge: the US government.

Esquel, the Hong Kong textile maker that began operations in Xinjiang in the mid-1990s, was one of six companies singled out for potential sanctions in draft legislation unveiled by US lawmakers in March, accusing it of using forced labour in the Xinjiang region of western China. The other five are mainland Chinese companies.

The legislation also cited media reports that a variety of Western companies were suspected of directly using forced labour or working with suppliers who did so in the region, including prominent Esquel customers Nike, Patagonia and Tommy Hilfiger.

If passed, the law would tightly restrict imports to the United States from Xinjiang, the toughest response yet to accusations of Beijing’s massive detention of Uygur Muslims and forced labour practices. That has ratcheted up the animosity as China retaliated on Monday with its own sanctions on US officials and politicians.

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US House of Representatives sends Uygur Human Rights Policy Act to Trump’s desk for approval

“It could have a big impact on us if the bill is passed,” said John Cheh, vice-chairman and chief executive of Esquel, which has achieved US$1.3 billion in revenue and produces more than 100 million garments annually, about a third of them shipped to its US clients.

But instead of shrinking from the challenge, Esquel will defend its stance and prove its innocence, said Cheh.

.css-sioo19{color:#c79a00;}Exclusive | Hong Kong textile firm Esquel to keep its Xinjiang factories open despite US sanctions threat over ‘forced labour’ accusations

Exclusive | Hong Kong textile firm Esquel to keep its Xinjiang factories open despite US sanctions threat over ‘forced labour’ accusations