In a recent development, China is investigating U.S. fashion giant PVH Corp., which owns popular brands like Tommy Hilfiger and Calvin Klein, for allegedly boycotting cotton from its Xinjiang region. The Commerce Ministry of China has accused PVH of unfairly shunning Xinjiang cotton and other products without valid reasoning, causing harm to Chinese businesses. This move comes amidst allegations of human rights violations in the Xinjiang region.
Probe into PVH Corp.
The Commerce Ministry of China has initiated an investigation into PVH Corp., a major U.S. fashion group, for allegedly “unreasonably boycotting” Xinjiang cotton and related products. PVH, known for its ownership of iconic brands like Tommy Hilfiger and Calvin Klein, is suspected of adopting discriminatory measures and violating normal market trading principles on Xinjiang products. The Ministry has demanded a response from PVH within 30 days regarding these accusations.
Possible Consequences
While specific details of potential penalties remain undisclosed, PVH could face inclusion in China’s “unreliable entity list,” which may result in fines or restrictions on trading with the country. In response to the probe, PVH has asserted its compliance with all relevant laws in the regions where it operates.
Previous Issues with China’s Policies
This investigation follows a recent ban by Washington on the sale of connected vehicles using Chinese technology. PVH’s website emphasizes its adherence to laws and regulations, including those concerning the U.S. government’s stance on the Xinjiang Uyghur Autonomous Region. The U.S. Uyghur Forced Labor Prevention Act prohibits the import of goods from Xinjiang unless companies can prove their production is free from forced labor practices.
China has faced accusations of detaining over a million Uyghurs and other Muslim minorities in Xinjiang since 2017, a claim Beijing vehemently denies. The country asserts that its policies in the region focus on combating terrorism and religious extremism while promoting economic growth.
Previous Concerns and Actions
Notably, in 2020, a report by the Australian Strategic Policy Institute highlighted Tommy Hilfiger and Calvin Klein among several companies allegedly benefiting from Uyghur workers outside Xinjiang. PVH responded by expressing deep concern and committing to evaluating how to uphold international labor standards in light of the situation in the region. Subsequently, PVH instructed its suppliers to audit their connections to a Chinese state-owned entity linked to alleged rights abuses in Xinjiang.
Conclusion
As the investigation unfolds, the fashion industry is closely watching how PVH Corp. navigates the allegations surrounding its practices in Xinjiang. The outcome of this inquiry could have significant implications for PVH and other companies operating in the region.
For more information on this ongoing investigation, you can visit The Hindu.