China Sanctions Calvin Klein Parent Company for "Violating Principles of Normal Market Transactions"

Dissatisfaction Over Allegations of Forced Labor of Uyghur People

The Chinese government announced that it will initiate sanction procedures against the US PVH Group, which owns famous fashion brands such as Calvin Klein. This is interpreted as a retaliatory measure against PVH Group's refusal to use cotton from the Xinjiang Uygur Autonomous Region due to allegations of forced labor involving the Uygur ethnic group.

On the 24th, China's Ministry of Commerce stated on the homepage of the "Unreliable Entities List Mechanism," China's version of a blacklist, that "the US PVH Group violated normal market transaction principles by suspending normal transactions with Chinese companies, organizations, and individuals regarding Xinjiang products and taking discriminatory measures. An investigation will be launched concerning these issues," adding that "this is to safeguard national sovereignty, security, and development interests, and is based on recommendations and complaints from relevant agencies."

The head of the Ministry of Commerce's Safety Control Bureau explained in a statement, "Recently, relevant Chinese agencies reported and complained that PVH Group violated normal market transaction principles without sufficient factual basis and unilaterally boycotted products such as Xinjiang cotton, damaging the legitimate rights and interests of Chinese companies as well as China's sovereignty, security, and development interests," and added, "Measures will be taken based on the investigation results."

He continued, "There was a question this year about whether the reactivation of the 'Unreliable Entities List' indicates a change in attitude toward foreign capital," emphasizing, "China targets only a very small number of foreign companies that destroy market rules and violate Chinese laws, and foreign companies that comply with the law have absolutely nothing to worry about."

Meanwhile, PVH Group, established in 1881, is a fashion company that owns well-known brands such as Tommy Hilfiger and Calvin Klein. In 2020, PVH Group ceased trading cotton from the Xinjiang Uygur Autonomous Region, China, amid allegations of forced labor involving the Uygur ethnic group, following regulations by the US Customs and Border Protection.

This content was produced with the assistance of AI translation services.