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Counterattack! Yida Sued The U.S. Department Of Commerce For Listing Its Subsidiaries On The Entity List

2021/7/9 13:40:00 0

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Counterattack Yida Group On Its Subsidiary Listed Entity Qing

On July 6, according to the official website of Yida group, a lawsuit was filed with the District Court of the District of Columbia on the case that the US Department of Commerce listed its subsidiary Changji Yida Textile Co., Ltd. (hereinafter referred to as Changji Yida), seeking legal relief for the economic and reputation losses caused to the whole group.

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The full text of the contents released by Yida group on June 6 is as follows:

Yida group always treats employees fairly, protects labor rights, upholds business ethics, and is committed to promoting sustainable development, which is widely recognized by the community. As a result, Yida group categorically denies the false accusations made by the US Department of Commerce against Changji Yida, which are contrary to all the business and code of conduct pursued by Yida group.

During the trump administration, the U.S. Department of Commerce listed Changji Yida in the entity list without prior notice and without evidence support, which caused immeasurable reputation loss and economic loss to the whole Yida group. Since September 2020, Yida has been actively and transparently responding to the accusations, and has submitted several commercial documents to the end user review committee of the U.S. Department of Commerce to confirm the allegation. However, the U.S. government has not yet made any substantive response or provided relevant evidence to support its decision to include Changji Yida in the entity list. Therefore, we have no choice but to resort to legal means in order to put an end to the sustained and destructive reputation and business damage caused by this false accusation to the enterprise as soon as possible.

"The U.S. Department of Commerce has never provided any evidence for the inclusion of Changji Yida on the entity list," said James tysse, a partner in the US law firm aign gangbo, who filed the lawsuit on behalf of the Yida group. From the legal point of view, this is a serious lack of factual basis, and far beyond the legal authority of the U.S. Department of Commerce. As a globally recognized leader in corporate social responsibility, the US Department of Commerce's accusation against Changji Yida is contrary to the fact that it has a good record in employing employees and protecting human rights. "

The list wrongly accuses Changji Yida of using forced labor in Xinjiang, China, which is totally inconsistent with the facts. A number of global third-party independent auditors have applied smeta (an internationally recognized ethical audit format) and other internationally recognized industry standards to audit Changji Yida, including field visits to Changji Yida in Xinjiang and random independent interviews with a number of Uygur employees. All audit results clearly show that there is no evidence that Changji Yida has forced labor or intimidated employees under any circumstances. Moreover, Changji Yida is not a labor-intensive factory. Changji Yida's production and operation mainly rely on advanced technology, highly automated equipment and professional training of technical personnel.

Yang minde, chairman and CEO of Yida group, stressed: "the practice of forcing or coercing labor completely violates the principle of Yida group which has been practiced for more than 40 years since its establishment. Yida group respects all employees working in Xinjiang, fully maintains their dignity, and always actively strives to create a mutual respect for all employees There is no form of discrimination or intimidation in an inclusive work environment. We have never used forced or coerced labor under any circumstances. "

In the past 10 months, Yida has provided a large amount of corporate information to the U.S. Department of Commerce's end user review committee in the hope that the matter can be resolved fairly. We also offered to accept further independent audit and to facilitate relevant officials and representatives to visit the factory on site. However, the end-user Review Committee has not provided any factual basis for its listing of Changji Yida.

In addition to the lack of factual basis, the lawsuit also pointed out that there was no legal basis for the U.S. Department of Commerce to include Changji Yida in the entity list. As a result, the group filed with the district court for access to the administrative procedures and records followed by the U.S. Department of Commerce in making this decision.

"We always hope that the U.S. Department of commerce can take the initiative to clarify the matter and correct this obvious error. However, the end user review committee has not made specific response to the large amount of information submitted by enterprises, or take any measures to correct its mistake of listing Changji Yida in the entity list. As a result, we have to take legal action to protect our business rights and interests, so as to reduce the huge damage that this is causing to our enterprises, employees and business partners every day. "

Recently, some forces in the United States and the West frequently hype Xinjiang related issues in an attempt to discredit China. In addition to "Xinjiang cotton", the U.S. Department of commerce also plans to list a number of enterprises in Xinjiang's photovoltaic industry into the "entity list" on the basis of so-called "suspected human rights violations", and restrict the import of relevant enterprises. On this matter, Chinese Foreign Ministry spokesman Zhao Lijian said at a regular press conference on June 24 that China strongly condemns the US side's sanctions against Chinese enterprises based on lies and false information. The so-called "forced labor" and "genocide" in Xinjiang are completely "century lies". On the basis of lies, the US side abused the "entity list" to crack down on the photovoltaic industry in Xinjiang, which not only violated the international trade rules and market economy principles, but also destroyed the global industrial chain and supply chain.

Zhao Lijian pointed out that, from cotton to photovoltaic, from agriculture to industry, the United States uses human rights as a pretext to suppress Xinjiang's industrial development by any means, which damages the people's right to subsistence and development. It also fully reveals that the real purpose of the United States is not to care about the facts and the truth, nor to really care about the people of Xinjiang, but to create "forced unemployment" and "forced poverty", Xinjiang will be plagued and China's development will be curbed.

This time, for Yida group, which focuses on and specializes in textile and garment industry, this "lawsuit" is undoubtedly the most direct "response" to the "false accusation" suffered by the enterprise since 2020.

On July 20, 2020, the Bureau of industry and security (BIS) of the U.S. Department of Commerce announced that 11 Chinese companies would be added to the entity list.

Among the 11 Chinese companies, there are 3 textile enterprises: Changji Yida Textile Co., Ltd., Hotan TEDA Garment Co., Ltd., and Nanjing Xinyi cotton textile printing and dyeing Co., Ltd.

Changji Yida textile was founded by Yida group in 2009. Yida produces clothing for brands such as Ralph Lauren, Tommy Hilfiger and Hugo Boss. On April 24, 2020, Yida group has issued an announcement: Yida opposes the use of forced labor.

At that time, Yida group responded that it was deeply indignant at the decision of the US Department of Commerce. In Yida, no matter in the past, present or future, forced labor will never be used. The accusation that Changji Yida used forced labor is totally unfounded. Changji Yida, established in 2009, is a full process intelligent spinning factory. The wages of front-line employees are more than 2-3 times of the local minimum wage. In 2019, a well-known international audit firm conducted an independent investigation in Changji Yida and confirmed that there was no forced labor.

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