The flags of China and the United States fly near the Bund before a U.S. trade delegation holds talks with their Chinese counterparts in Shanghai, China, on July 30, 2019.
Song Ali|Reuters
BEIJING – China's Ministry of Commerce said on Tuesday launch detector Enter Calvin Klein-parent PVH Group Suspected of supply chain business interruption in Xinjiang.
The ministry said the investigation was part of its “unreliable entities” list mechanism. The list was launched shortly after the United States blacklisted Huawei in 2019. It is the Chinese version of the U.S. Department of Commerce’s Entity List, which restricts designated companies from accessing products originating in the United States.
The U.S. Commerce Department on Monday announced plans to ban the import or sale of certain hardware or software in vehicles. Related to China or Russia.
China's Commerce Ministry did not say on Tuesday why it was investigating PVH now, but said the U.S. retail group had 30 days to respond. U.S. defense companies previously included on the “unreliable entities” list include: No import or export related to China.
China’s investigation accuses PVH of “targeting Xinjiang suppliers, violating normal market transaction principles, disrupting normal transactions with Chinese companies, individuals and others, and taking other discriminatory measures,” according to a Chinese text translated by CNBC. .
PVH did not immediately respond to CNBC's request for comment outside U.S. business hours.
The group, which also owns Tommy Hilfiger, is one of several foreign retail companies facing scrutiny in China over efforts to distance itself from alleged forced labor practices in the country's Xinjiang region.
in a July 2022 Corporate Responsibility ReportPVH said Xinjiang is one of the regions where direct or indirect purchases are not allowed.
PVH said that in the quarter ended August 4, Calvin Klein and Tommy Hilfiger's international revenue fell 4.3% year-on-year to $1.38 billion, dragged down by “the challenging consumer environment in the Asia-Pacific region, especially in China and Australia.” earnings release.
That overseas revenue accounted for more than half of PVH's total revenue of $2.07 billion this quarter.
Xinjiang is home to Uighur Muslims, who have been identified as such by authorities. United Nations, USA, U.K. and others as oppressed ethnic groups. China has repeatedly denied accusations of forced labor and other abuses in Xinjiang. The government says facilities the United States, Britain, Canada and human rights groups call detention camps are actually vocational training centers.
—CNBC’s Sonia Heng contributed to this report.