China Investigates US Fashion Giant PVH Over Xinjiang Cotton Allegations
China has launched an investigation into PVH Corp., the parent company of renowned fashion brands Tommy Hilfiger and Calvin Klein, amid suspicions of “discriminatory measures” against companies sourcing cotton from Xinjiang. This move is part of Beijing’s broader effort to counter Western allegations concerning the use of forced labor in the production of cotton and other goods in the region.
The Chinese Ministry of Commerce has accused PVH of “boycotting Xinjiang cotton and other products without any factual basis.” This investigation follows the U.S. ban on imports from Xinjiang in 2021 due to concerns over human rights abuses linked to the Uyghur ethnic group.
PVH, which has a substantial presence in both the Chinese and U.S. markets, has stated that it is in contact with Chinese authorities and has 30 days to respond to the investigation. The outcome of this inquiry could result in the company being added to China’s “unreliable entities” list, a designation that could lead to further sanctions.
“As a matter of company policy, PVH maintains strict compliance with all relevant laws and regulations in all countries and regions in which we operate,” the company said. “We are in communication with the Chinese Ministry of Commerce and will respond in accordance with the relevant regulations.”
A Chinese official from the Ministry of Commerce clarified that the probe is not linked to U.S. plans to ban certain Chinese electric vehicle technologies. “China has always handled the issue of the unreliable entity list prudently, targeting only a very small number of foreign entities that undermine market rules and violate Chinese laws,” the official stated, assuring that “honest and law-abiding foreign entities have nothing to worry about.”
Experts, however, caution that this investigation may tarnish PVH’s reputation among Chinese consumers. Cullen Hendrix, a senior fellow at the Peterson Institute of International Economics, noted that the action serves as a reminder to Western firms about the potential consequences of yielding to Western concerns regarding human rights issues. “This same kind of naming-and-shaming tactic, that human rights organizations in the West have used, can be weaponized here,” he said.
The investigation comes amid rising tensions between China and the West over various issues, including trade, technology, and manufacturing. On Monday, the U.S. proposed regulations to restrict certain technologies in Chinese and Russian vehicles, citing security threats.
As disputes continue to escalate, Hendrix pointed out that the targeting of PVH—a consumer-oriented brand—indicates that the conflicts are extending beyond defense and advanced technologies, impacting a wider array of supply chains across different sectors.
In its annual report, PVH has acknowledged the revenue and reputational risks stemming from the scrutiny surrounding Xinjiang, noting that it has faced criticism alongside other multinational companies. The firm was previously named in a 2020 report by the Australian Strategic Policy Institute, which alleged that numerous companies were benefiting from labor abuses in the region. At the time, PVH expressed its commitment to addressing these serious concerns.
With over 29,000 employees worldwide, PVH generates more than 65% of its sales outside the U.S., making it a significant player in the global fashion industry.
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