Hugo Boss Buys From Company Tied To Xinjiang

Forced labor is widespread in China’s western Xinjiang region – and the government’s control over information is so absolute – it’s almost impossible to determine whether forced labor is used in the supply chain there. But here’s what to know:

• Esquel Group gins and spin cotton in Xinjiang.

• In July 2020, the US government placed a trade ban on one of its Xinjiang subsidiaries, Changji Esquel Textile Co., due to concerns about forced labor.

• In January 2021, US regulators banned all Xinjiang cotton from entering the US, again citing forced labor.

Since the cotton ban, a different Esquel subsidiary in Guangdong – hundreds of miles away from Xinjiang – has continued to export its clothes to brands in the US. But procurement records and company statements reviewed by BuzzFeed News show that Esquel’s Guangdong branch is working with Xinjiang-based cotton spinning mills. When asked repeatedly, neither Hugo Boss nor Tommy Hilfiger nor Ralph Lauren would say where the cotton in Esquel’s shipments came from.

Esquel’s own public statement made it clear that Xinjiang’s cotton production is closely related to clothing operations around the world. The company describes itself as “vertically integrated,” meaning it has factories for each stage of the cotton supply chain: Gin Esquel separates the cotton fibers from the seeds, and the fibers are then spun into yarn at Esquel’s spinning mill. Esquel’s Guangdong factories embroider and weave cotton yarn to make fabric, which is then used to make clothes that can be exported to other countries through Hong Kong-based Esquel Enterprises. The company owns at least two cotton ginning companies in Xinjiang, where much of China’s cotton is grown – but has made no public reference to owning any cotton ginning facilities outside the region.

Since the U.S. ban on all Xinjiang cotton began last January, at least 16 shipments of Esquel have arrived in the U.S. for Hugo Boss, trade records show, the most recent in mid-December. One shipment has arrived to PVH, Tommy Hilfiger’s parent company, containing Tommy Hilfiger branded items; four for Ralph Lauren; and one for Polo, a subsidiary of Ralph Lauren. Guangdong Esquel, together with other Esquel companies, is still listed as a supplier in the latest supplier list published by Hugo Boss. PVH has included Guangdong Esquel in its supplier list, as well as Esquel subsidiaries in Vietnam and Sri Lanka, but at the end of December – after BuzzFeed News reached out for comment – PVH released an updated version of its list, and there is no Esquel subsidiary in it. . No Esquel company appears on Ralph Lauren’s latest list, published in November.

Hugo Boss said in a statement that it had contacted Esquel, and the company replied that “all our specifications and standards, including respect for human rights and fair working conditions, have been implemented and implemented.” Hugo Boss also said that his own audit at the Esquel production facility revealed evidence of the use of forced labor.

PVH and Ralph Lauren did not respond to requests for comment.

In response to a list of questions, Esquel said it has never used and will never use forced or forced labor. It added that it follows all national import and export laws, and does not sell products that are prohibited in certain jurisdictions.

Asked which regions are the source of the cotton besides Xinjiang, Esquel did not provide any details, saying only that the sources are from “most of the major cotton-producing countries in the world.”

Esquel’s shipment raises questions not only about whether the brand continues to sell products that use cotton grown in Xinjiang but also about whether the U.S. ban really works.

“Cotton is grown in Xinjiang, but then sold to warehouses, processors and suppliers all over China,” said Laura Murphy, professor of human rights and contemporary slavery at Sheffield Hallam University, who has conducted research on forced labor in Xinjiang. And then it goes as raw cotton or as thread and fabric to the rest of the world. “Every time we move, the origin is blurred. There are many ways to trace it, but until now most companies have not invested in knowing the origin of the raw cotton.

A spokesperson for Customs and Border Protection told BuzzFeed News that under US law, importers must take “reasonable care” to ensure that their supply chain is free of forced labor. Asked what constitutes “reasonable care,” the spokesperson said companies are advised to “become familiar with applicable laws and regulations” and work with the agency to protect consumers from “harmful and counterfeit imports.”

As part of a campaign targeting Muslims, the Chinese government has created a labor program where Uyghurs and other ethnic minorities are made to work on farms and in factories. The US labeled the campaign as genocide and increased pressure on the Chinese government, including a diplomatic boycott of the Beijing 2022 Winter Olympics. passed a law mandating that all goods from Xinjiang must be stopped at the border on suspicion that they were made with forced labor, placing the burden of proof on importers.

The region has long been a top source of cotton for international companies. China is now the world’s leading producer of cotton, with more than 87% coming from Xinjiang. Research shows that forced labor in the region is not limited to factory work – there is also evidence of forced labor among cotton pickers in southern Xinjiang.

Xinjiang’s cotton ban has become a flashpoint in a larger diplomatic row between the US and China, with the Chinese government, along with Chinese consumers and celebrities, pushing international fashion brands to continue sourcing in the region as a show of patriotic support.

Human rights groups welcomed the ban but doubted it would be fully enforced. He said forced labor by Uyghurs and other Muslim minority groups, supported by government programs, is widespread in Xinjiang, making it nearly impossible for companies with sources to ensure their suppliers don’t use them. The political sensitivity of the issue, combined with other repressive government measures targeting minority groups, makes it more difficult for foreign companies to inspect supply chains..

The Better Cotton Initiative, an industry group that promotes sustainability by auditing supply chains, halted its review in Xinjiang in October 2020, citing an “increasingly unsustainable operating environment.” Five companies did the same.

Esquel is the world’s largest manufacturer of woven cotton shirts, supplying major brands with over 100 million annually, generating annual revenues of over $1.3 billion. Esquel operates two cotton ginning factories in Xinjiang and three spinning factories, where cotton is spun into yarn. BuzzFeed News was able to geolocate three spinning factories in Xinjiang and a garment factory in Guangdong, matching images of the facilities on Esquel’s website with satellite imagery and street-level imagery from Baidu Total View and confirming their locations. Esquel’s book produced to celebrate the company’s 40th anniversary describes how a spinning factory in Xinjiang’s Turpan prefecture was set up specifically to supply the Guangdong factory. In 2018, the book added, Esquel’s investment in Xinjiang totaled $100 million, including charitable donations. The company did not respond to questions about whether the supply route had changed.