China has announced an investigation into PVH, the US retailer behind the Calvin Klein and Tommy Hilfiger brands, for potentially discriminatory practices against products from Xinjiang.
The announcement, made by China's Ministry of Commerce on 24 September 2024, seeks to scrutinise PVH's actions regarding Xinjiang-sourced goods.
The US's Uyghur Forced Labor Prevention Act (UFLPA), which took effect in 2022, bans imports of goods mined, produced or manufactured wholly or in part in Xinjiang into the country.
The company, headquartered in New York, has acknowledged ongoing discussions with the Chinese Ministry of Commerce.
PVH announced in July 2020 that it would end all business with Xinjiang-based factories and mills, or those using cotton from the area, within one year.
In a statement to CNBC, PVH said: “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. We are in communication with the Chinese Ministry of Commerce and will respond in accordance with the relevant regulations. We have no further comment at this time.”
Advocacy groups argue that forced labour is rampant in Xinjiang, which is a major cotton supplier for China's textile industry.
The European Union is advancing towards implementing a ban akin to the US legislation.
In its 2024 second-quarter results, PVH reported that overall revenue in the company’s international businesses decreased by 4%.
The company attributed the drop to the challenging consumer environment in Asia Pacific, mainly in China and Australia.