The Chinese government is considering adding US fashion retailer PVH Group to its Unreliable Entity List for boycotting cotton from Xinjiang province “without factual basis,” according to a recent announcement from the Ministry of Commerce (MOFCOM).
The company owns major clothing brands Calvin Klein and Tommy Hilfiger, among others.
The ministry’s statement said it suspected the company of “violating normal market transaction principles” through its avoidance of Xinjiang cotton. Indeed, PVH Group expressly prohibits direct and indirect sourcing of materials from Xinjiang in its supply chain guidelines.
According to MOFCOM, the boycott could “endanger China’s sovereignty, national security and development interests,” while also harming Chinese companies.
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If PVH Group is found to be an “unreliable entity,” it would effectively be banned from doing business in China.
In 2022, the US banned all goods produced in Xinjiang province due to concerns over human rights allegations that the Chinese government has strenuously denied.
PVH Group has told CNN it was in “communication with the Chinese Ministry of Commerce and will respond in accordance with the relevant regulations.”
MOFCOM’s announcement comes a day after the US government proposed banning the sale or import of smart vehicles fitted with certain Chinese or Russian technologies within its territory, citing national security concerns.
