China Backlists Calvin Klein, Tommy Hilfiger
China has blacklisted the owners of Calvin Klein and Tommy Hilfiger, potentially forcing the companies to close their stores and factories.
China also placed PVH Corp. on its list of “unreliable entities” on Tuesday.
This list gives the Chinese government the authority to fine the retailer, forbid import and export operations, cancel work permits, and prevent employees from entering the nation.
PVH was officially placed on China’s blacklist on Tuesday, the Ministry of Commerce started looking into the company in September for allegedly refusing to source cotton from the Xinjiang region, which is known for its Uyghur detention camps.
The announcement followed a series of other retaliatory actions against the United States, which had imposed a 10% tariff on Chinese imports. A. such as additional taxes on farm equipment and energy imports.
The company’s Asia-Pacific headquarters are located in the autonomous region of Hong Kong, where it is unclear if China would attempt to impose sanctions on PVH.
A law passed by China in 2020 gave it additional authority to enforce national laws in Hong Kong, “particularly the case with laws applicable to national security,” which may include the list of unreliable entities.
PVH might be forced to relocate its production to other nations and find it difficult to fulfill customer orders if China forbids it from manufacturing in the area.
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