China probes Calvin Klein over Xinjiang cotton

Published On Sep 24, 2024, 3:12 PM

China is investigating PVH Corp, the parent company of Tommy Hilfiger and Calvin Klein, over allegations of discriminatory practices against Xinjiang cotton companies. This follows US restrictions on imports from Xinjiang due to concerns of forced labor. The Chinese government accused PVH of boycotting their cotton based on unfounded claims. If findings are adverse, PVH could face significant consequences including being listed as an unreliable entity in China, which could damage its reputation and sales in the Chinese market. The investigation reflects escalating tensions between China and western countries regarding human rights and trade practices.

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Given the investigation and potential labeling of PVH as an unreliable entity, it is likely to face increased scrutiny and challenges in the Chinese market, which may negatively impact its sales and stock performance.

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