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Reuters: How firms linked to sanctioned Chinese cotton giant sell clothes to US
The makers exported at least $5 million in cotton goods to the United States while continuing to buy much of their cotton from Esquel, records show.
Three Vietnamese garment manufacturers with ties to sanctioned Chinese textile giant Esquel Group have exported at least $5 million in cotton goods to the United States since the company was blacklisted in November 2024.
Operating under new names since October 2022, the manufacturers maintained the same offshore ownership and oversight from former Esquel chief executive Edgar Tung, who served as an owner's representative.
Brands including Japanese retailer Muji and New Zealand-based Rodd & Gunn sourced apparel from these factories, though both companies stated they were unaware of any links to the sanctioned Chinese firm.
Joshua Kagan, a former assistant U.S. trade representative, said the ties are "likely sufficient" for customs authorities to conclude the manufacturers operate within Esquel's ecosystem, despite limited agency oversight.
Democratic lawmakers reported in December 2025 that U.S. Customs and Border Protection inspections had "dropped drastically in recent months despite no evidence that shipments of goods prohibited by the law have slowed.