China Sanctions Threaten PVH Corp Over Xinjiang Cotton Boycott
China’s Investigation into PVH Corp
China's Commerce Ministry has announced that it is investigating PVH Corp, the parent company of Calvin Klein and Tommy Hilfiger, due to its refusal to source cotton from the Xinjiang region. This move comes amid escalating tensions between the U.S. and China over human rights concerns.
Potential Sanctions on PVH Corporation
The potential sanctions could place PVH on China’s unreliable entities list, which would severely limit its ability to conduct business in a market that represents significant revenue. PVH has made a public statement asserting its compliance with local laws and its commitment to responsible sourcing practices.
Impact of Xinjiang Cotton Boycott
PVH’s current policies prohibit direct or indirect sourcing from Xinjiang, a decision precipitated by the U.S. banning products from this region due to forced labor concerns. The company reported over 20% growth in local currency in China, highlighting its reliance on the Chinese market.
Wider Implications for Global Fashion
Other global fashion retailers have faced backlash in China regarding their stances on Xinjiang cotton. An example includes H&M, which experienced severe market consequences in early 2021 but later saw a restoration of its products. The ongoing political dynamics suggest that PVH may need to navigate carefully to maintain its position in this lucrative market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.