China's Commerce Ministry has launched an investigation into PVH Corp, the parent company of brands like Tommy Hilfiger and Calvin Klein, for alleged trade rule violations related to a boycott of products from Xinjiang. The ministry's announcement follows accusations that the Chinese government detains mostly Muslim ethnic groups in the region, a claim Beijing denies.
The investigation centers on accusations that PVH has unreasonably avoided Xinjiang cotton, potentially harming Chinese businesses and infringing on national interests. China has faced criticism from Western consumers and governments regarding human rights violations in Xinjiang, while simultaneously retaliating against companies expressing concern over forced labor in the area.
In response, PVH stated that it adheres to laws and regulations in all markets, including US government policies regarding the Xinjiang region. The ministry's inquiry falls under China's ‘Unreliable Entities List,’ a mechanism aimed at countering foreign sanctions. PVH is expected to provide details within 30 days about any discriminatory practices regarding Xinjiang-related products over the past three years.
