PVH Corp, parent of Calvin Klein and Tommy Hilfiger, is facing an investigation from the Chinese Commerce Ministry over suspected violations of market trading rules regarding Xinjiang-related products.
The ministry said in a statement it suspects the company of boycotting Xinjiang cotton and other products “without factual basis”. Such violations would seriously damage the rights and interests of relevant Chinese companies and endanger China’s sovereignty and security, it added.
PVH was given 30 days to provide documentation and evidence detailing whether it had taken “discriminatory measures” against Xinjiang-related products in the past three years.
According to AP, the US has blocked some imports from Xinjiang, where China’s ruling Communist Party is accused of holding members of mostly Muslim ethnic groups in detention camps. Companies buying cotton and other goods from Xinjiang face pressure from western consumers over alleged human rights violations and forced labour.
However, the Chinese denied any abuses and explained the steps it has taken are to combat terrorism and a separatist movement.
In an undated statement on its website, PVH says it is “deeply troubled” by the reports of mistreatment and coercive labour practices involving minorities inside and outside Xinjiang.
“Our longstanding pledge to support workers’ rights is captured in our “A Shared Commitment” code of conduct, which requires our business partners to comply with International Labor Organization Standards, including the elimination of all forms of forced labour,” the company states.
In response to the announcement from China, PVH said it would respond appropriately, as the company “maintains strict compliance” with the laws and regulations in all countries and regions where it operates.