AccordingtoajointmotionfiledlastTuesdayintheU.S.DistrictCourtfortheDistrictofColumbia,theU.S.End-UserReviewCommitteeultimatelyvotedtobancertainUndertheconditions,theChangjiEsquelsubsidiaryofHongKongtextileandapparelmanufacturerEsquelGroupwillberemovedfromtheso-calledentitylist.
TheEnd-UserReviewCommitteeiscomposedofinteragencyrepresentativesfromtheU.S.DepartmentsofCommerce,State,Defense,Energy,andTreasury(asapplicable),responsiblefordecidingwhethertoincludeanentityontheEntityList.
“Thepartiesarecurrentlyengagedinfurtherdiscussionsregardingtheseconditions,”thelatestmotionstates.
Inthemotion,bothpartiesaskedtheU.S.DistrictCourtfortheDistrictofColumbiatopostponethenextscheduledhearinginthecaseuntilSeptemberwhilethepartiescontinuediscussionsandthelitigationcontinues.middle.
EsquelGroupisadiversifiedcottontextilebusinessgroup.Thecompany’sbusinessareasincludecottonplanting,spinning,weaving,clothing,exportandretail.Itisamultinationalcompany.Thecompany’smainproductsaretheproductionandexportofcottonshirts;itscustomersincludeFrenchCrocodile,Marks&SpencerandTommyHilfigerandotherready-to-wearbrands,withanannualsupplyofmorethan70millionpieces.
OnJuly20,theofficialwebsiteof”EsquelGroup” issued a statement: “Esquel Group filed a preliminary injunction motion with the U.S. court regarding the inclusion of its subsidiary in the Entity List. “.
On July 19, 2021, Esquel Group responded to the case of the U.S. Department of Commerce’s inclusion of its subsidiary Changji Esquel Textile Co., Ltd. (referred to as Changji Esquel) on the Entity List A motion for a preliminary injunction was filed in the U.S. District Court for the District of Columbia seeking an immediate end to the financial and reputational harm this matter has caused to the entire group.
During the Trump administration, the U.S. Department of Commerce added Changji Esquel to the Entity List without prior notification and without evidence. Since September 2020, Esquel Group has been actively and transparently responding to relevant accusations and has submitted multiple business documents to the End-User Review Committee of the U.S. Department of Commerce (The End-User Review Committee) to prove that the accusations are false. However, the U.S. government has not yet made any substantive response to this or provided relevant evidence to support its decision to include Changji Esquel on the entity list. For this reason, we have no choice but to resort to legal means in order to end as soon as possible the ongoing and damaging reputational and commercial damage caused by this false accusation to the company.
Esquel Group filed a lawsuit against the U.S. Department of Commerce on July 6, accusing the U.S. Department of Commerce of lacking legal and factual basis for including Changji Esquel in the Entity List, and Request to see the administrative procedures and records used by the Department of Commerce to make this determination. For details on this case, please refer to the full press release issued by Esquel Group.
In 1995, Esquel expanded its business to Xinjiang, which is rich in long-staple cotton. By the end of 2019, Esquel’s team in Xinjiang exceeded 1,300 people. </p
