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Li Ning
Business

Li Ning refutes US claim of using North Korean forced labour in its supply chain as his sports goods are banned in America

  • Li Ning said his company has “zero tolerance” for misconduct, according to a statement to the Hong Kong stock exchange
  • US statutes carry “rebuttable presumption” that all goods from the target area are tainted, unless there is “clear and convincing evidence” otherwise

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Signage of Li Ning Company Limited’s store in Shanghai on Feb. 10, 2022. Photo: Bloomberg
Lam Ka-sing

Li Ning, the triple-gold Olympic medallist in gymnastics, said his namesake company has not found any forced labour in its supply chain, defending one of China’s largest athletic brands after its exports were banned this week by US customs.

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“During the operation and review process, the group has not discovered any cases of forced labour in the supplier management system,” Li said in a statement to Hong Kong’s stock exchange, where the shares of Li Ning Company Limited are traded. The company “strictly prohibits and opposes any form of forced labour employed by its suppliers,” and “always upholds human rights and legal rights of labour”, Li said, adding that these are the “basic principles” for his company’s cooperation with all partners.
The US Customs and Border Protection (CBP) this week banned Li Ning’s products from entering the American market, citing “unless the importer provides clear and convincing evidence” that there was no forced labour involved, according to a statement.

Under the Countering America’s Adversaries Through Sanctions Act (CAATSA), goods manufactured wholly or in part by North Koreans anywhere in the world are banned in the US, unless clear and convincing evidence is provided that they were not made with forced labour.

Li Ning, the retired Olympic gold medalist and founder of Li Ning Company Limited, during an interview in Beijing on April 29, 2019. Photo: Simon Song
Li Ning, the retired Olympic gold medalist and founder of Li Ning Company Limited, during an interview in Beijing on April 29, 2019. Photo: Simon Song

“This has been an ongoing investigation for several months involving numerous offices within CBP who independently reached the same conclusion,” a CBP spokesperson said in an emailed reply to South China Morning Post, three days after the ban on Li Ning’s products took effect. “CAATSA is a sanction, and is already imposed on Li-Ning until … the company can provide a rebuttal to CBP’s presumption of North Korean labour in their supply chain.”

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The ban on Li Ning is the latest dust-up between the US and China, as the worst bilateral relations in decades spilled over into punitive actions on companies that are maintaining commerce between the two largest economies on the planet.
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