China probes Calvin Klein over Xinjiang cotton boycott

Investigation could tarnish Calvin Klein's reputation among Chinese consumers and send a warning to other companies

China has initiated an investigation into PVH Corp., the parent company of American fashion brands Tommy Hilfiger and Calvin Klein, over alleged "discriminatory measures" against Xinjiang cotton producers.

This action underscores China's response to ongoing accusations from Western officials and human rights advocates concerning alleged forced labor practices involving the Uyghur ethnic group in the Xinjiang region.

The Chinese Ministry of Commerce has accused PVH of boycotting Xinjiang cotton without factual justification.

This investigation comes in the wake of the United States banning imports from Xinjiang in 2021 due to concerns about forced labor.

PVH has not yet commented on the investigation but has previously stated its commitment to complying with local laws in the areas it operates, including the US legislation pertaining to Xinjiang.

PVH has 30 days to respond to the investigation, failing which it could be listed among China's "unreliable entities," which may lead to further punitive measures.

A representative from China’s Ministry of Commerce clarified that the probe is not connected to US plans to ban certain electric vehicle technologies, asserting that the unreliable entity list is applied judiciously and targets a minimal number of foreign firms that breach Chinese laws or market norms.

Analysts suggest that this investigation could tarnish PVH's reputation among Chinese consumers and send a broader warning to multinational companies about the repercussions of aligning too closely with Western human rights concerns.

Cullen Hendrix, a senior fellow at the Peterson Institute for International Economics, noted that China is asserting its influence and reminding Western businesses that actions can have consequences.

This inquiry into PVH arrives amid escalating tensions between China and Western nations over a variety of issues, including trade practices and technology restrictions.

On the same day as the investigation announcement, the US proposed new regulations aimed at restricting certain technologies in vehicles from China and Russia due to security risks.

PVH has warned its investors about potential revenue losses and reputational damage stemming from the ongoing disputes regarding Xinjiang cotton.

The company has been previously named in a report by the Australian Strategic Policy Institute, which implicated several firms in benefiting from labor abuses in the region.

Although PVH acknowledged the seriousness of these claims, it stated its commitment to addressing the issue.

The investigation comes at a time when various global companies, including automakers like BMW, Jaguar Land Rover, and Volkswagen, have faced scrutiny for using components linked to alleged forced labor in Xinjiang.

Reports indicate that at least 8,000 BMW Mini Coopers were imported into the US with parts from a Chinese supplier banned for alleged forced labor connections.

The US Congress enacted the Uyghur Forced Labor Prevention Act in 2021, aiming to curb the import of goods from Xinjiang suspected of being produced with forced labor.

China's government has vehemently denied these allegations, asserting that the US actions harm the employment rights of people in Xinjiang under the guise of human rights advocacy.

A Chinese Foreign Ministry spokesperson condemned the Uyghur Forced Labor Prevention Act, arguing that it does not protect human rights but rather contributes to unemployment in the region.

The spokesperson also affirmed China's commitment to safeguarding the rights of its enterprises amidst these international pressures.

US lawmakers and lobbyists on the other hand have been makeind extensive efforts to make it illegal to ban boycotts of Israel, and target the Boycott Divest Sanctions (BDS) movement.

The BDS movement has gained momentum after Israel began its brutal offensive on Gaza last year.

 Flouting a UN Security Council resolution calling for an immediate cease-fire, Israel has also continued a brutal offensive on Gaza since a Hamas attack last October 7.

Over the course of nearly a year, Israeli attacks have killed more than 41,000 people, mostly women and children, and injured over 95,500, according to local health authorities.

The Israeli onslaught has displaced almost the entire population of the territory amid an ongoing blockade that has led to severe shortages of food, clean water, and medicine.

Israel also faces accusations of genocide for its actions in Gaza at the International Court of Justice.