China Probing Parent of US Fashion Retailers for Discriminating Against Xinjiang Products
China is investigating American clothing company PVH Group, which owns Calvin Klein, Tommy Hilfiger and other major fashion retailers, for possible inclusion on its so-called unreliable entity list, China's Ministry of Commerce announced Sept. 24, according to an unofficial translation. China said PVH is suspected of violating “normal market trading principles” for products related to the country’s Xinjiang region, along with the “interruption of normal transactions with Chinese companies, other organizations or individuals, and adoption of discriminatory measures.”
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The ministry said PVH can submit comments and other “supporting materials” to Beijing within 30 days from Sept. 24. That submission should explain whether the company took “discriminatory measures” against products from Xinjiang in the past three years and “other information required by the investigation authority.” PVH can also argue against its potential inclusion on the list.
China said it launched the probe after receiving “suggestions and reports” from “relevant institutions.” Beijing will investigate PVH by “questioning the parties, reviewing or copying relevant documents and materials, and other necessary methods in accordance with the law, and PVH Group and relevant companies shall cooperate,” the ministry said.
A PVH spokesperson said Sept. 24 that the company "maintains strict compliance with all relevant laws and regulations in all countries and regions in which we operate. We are in communication with the Chinese Ministry of Commerce and will respond in accordance with the relevant regulations. We have no further comment at this time.”
The Chinese notice didn’t give more details about the alleged violations. The U.S. has sanctioned a range of Xinjiang-related companies and officials in recent years, and it also requires companies to comply with restrictions on certain imports from Xinjiang that it said are presumed to be made with forced labor.