Fashion Company Faces Investigation In China

The Commerce Ministry of China released a statement last 24 September that it will investigate the fashion company PVH, which owns brands like Tommy Hilfiger and Calvin Klein, for suspected violations of trade rules.

The ministry posted online that it would investigate the American company’s suspected boycott of commercial goods from the far western Xinjiang region, where China’s ruling Communist Party is accused of holding members of mostly Muslim ethnic groups in detention camps.

"The U.S. PVH Group is suspected of violating normal market trading principles and unreasonably boycotting Xinjiang cotton and other products without factual basis, seriously damaging the legitimate rights and interests of relevant Chinese companies and endangering China’s sovereignty, security and development interests," the Commerce Ministry said.

Washington has blocked some imports from Xinjiang, while Beijing has protested against such moves. China denies any abuses and says steps it has taken are necessary to combat terrorism and a separatist movement.

Companies that buy clothing, cotton, tomatoes and other goods from Xinjiang face pressure from western consumers over alleged human rights violations in the region, while Beijing has whipped up Chinese anger at brands that express concern about possible forced labor.

A statement on PVH's website says the company complies with laws and regulations wherever it does business, "including with respect to U.S. government policy regarding the Xinjiang" region. In response to the announcement from China, PVH said it was in contact with the Commerce Ministry and would respond appropriately.

"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 reiterated last 24 September, declining further comment.

The Commerce Ministry said the investigation would be under the rules of China's "Unreliable Entities List," which is used as a counter-sanction against measures taken against Beijing.