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China raises Xinjiang cotton with parent firm for Calvin Klein and Tommy Hilfiger

Beijing ministry reveals it initiated investigation into PVH Group under Unreliable Entry List framework due to ‘discriminatory’ measures

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Cotton from China’s Xinjiang Uygur autonomous region has been the subject of numerous trade restrictions, led largely by the West. Photo: Xinhua
Luna Sunin BeijingandKinling Loin Beijing

The parent company of clothing brands Calvin Klein and Tommy Hilfiger said on Tuesday that it was in communication with the Chinese government over allegations that the firm has undertaken “discriminatory” measures related to products from the country’s far western Xinjiang Uygur autonomous region.

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In a move that threatens to compound already fraught trade tensions with the United States, China’s Ministry of Commerce revealed earlier on Tuesday that it initiated an investigation into PVH Group under the framework of its Unreliable Entity List (UEL) – a blacklist that could ban the firm from trade with China and prevent the flow of associated investment or people into the country.

After reports from various agencies to the UEL office, the ministry said, the American PVH is suspected of “violating normal market transaction principles by arbitrarily boycotting Xinjiang cotton and other products”, an action the ministry said “severely undermines the legitimate rights and interests of Chinese enterprises” and “threatens China’s sovereignty, security and development interests”.

Per the ministry’s statement, the company must submit written materials related to the case from the past three years within 30 days. During the period, PVH may present its defence, while the UEL office will conduct its own investigation, including inquiries and document reviews.

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Global brands face backlash in China for rejecting Xinjiang cotton

Global brands face backlash in China for rejecting Xinjiang cotton

“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,” a company representative said in an email.

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