The U.S. government has banned Hong Kong-based Esquel Group, a major garment manufacturer and former supplier to global brands such as Nike and Tommy Hilfiger, from importing goods into the country due to alleged connections to forced labor in China’s Xinjiang region. Effective November 1, the move comes under the Uyghur Forced Labor Prevention Act (UFLPA), which prohibits imports from companies with suspected ties to forced labor.
The U.S. Department of Homeland Security (DHS) added Esquel and its related entities to the UFLPA’s “entity list.” This designation blocks these companies’ goods from entering the U.S., extending a previous ban on Esquel’s Xinjiang-based subsidiary, Changji Esquel Textile, which had been barred from the U.S. market over similar allegations. Esquel has long maintained that it does not engage in forced labor and has sought to clear its name through legal channels. However, its initial bid to reverse the ban was unsuccessful, resulting in the expansion of restrictions to include the parent company.
Esquel Group has historically played a substantial role in the apparel industry, reportedly shipping over 60% of its annual output of 110 million garment pieces to the U.S. market. The addition of the parent company to the entity list poses a severe challenge for the group as it works to rebuild business relationships disrupted by its subsidiary’s earlier blacklisting.
Homeland Security Undersecretary Robert Silvers, who chairs the forced labor enforcement task force, reaffirmed the administration’s commitment to eliminating forced labor from U.S. supply chains. The UFLPA, enacted in 2022, primarily targets imports linked to Xinjiang, home to the Uyghur and other minority groups. While the U.S. asserts that these groups are subject to forced labor, China denies the claims, viewing U.S. actions as interference in its domestic affairs.
The UFLPA’s entity list, which now includes Esquel Group, helps U.S. businesses vet supply chains, giving them more transparency and ensuring compliance with U.S. labor standards.
