Wed Sep 25 08:33:49 UTC 2024: ## China Launches Probe into PVH Group Over Xinjiang Supply Chain Concerns
**BEIJING** – China’s Ministry of Commerce announced on Tuesday it is launching an investigation into PVH Group, the parent company of Calvin Klein and Tommy Hilfiger, over alleged disruptions to its Xinjiang supply chain. The probe is part of the ministry’s “unreliable entities” list mechanism, which was created in 2019 to restrict companies deemed to be a threat to China’s national security or interests.
The investigation alleges that PVH targeted Xinjiang suppliers, disrupting normal business transactions and employing discriminatory measures. PVH, in a statement to CNBC, said it complies with all relevant laws and regulations in all its operating regions and will respond to the investigation accordingly.
The move comes after the US Commerce Department announced plans to ban the import or sale of vehicles with specific hardware or software linked to China or Russia.
PVH’s investigation follows scrutiny of several foreign retail companies in China for their efforts to distance themselves from alleged forced labor practices in the Xinjiang region. The company’s 2022 corporate responsibility report states that Xinjiang is one of the regions where it does not source products directly or indirectly.
China has repeatedly denied allegations of forced labor and other abuses in Xinjiang, claiming facilities there are vocational training centers. The US, UK, Canada, and numerous human rights groups, however, have characterized these facilities as internment camps for Uyghur Muslims, who have been identified as a repressed ethnic group.
The investigation into PVH could have significant implications for the company’s business in China, especially considering its substantial revenue from the region. The outcome of the probe remains uncertain, but it highlights the growing tensions between the US and China over human rights concerns and trade relations.
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