China looks into a US corporation that declined to purchase cotton from Xinjiang.

China has launched an investigation into PVH Corp., the U.S. parent company of fashion brands Calvin Klein and Tommy Hilfiger, for suspected discriminatory measures by refusing to purchase cotton and other products from its northwestern region of Xinjiang, home to 12 million Uyghurs.

Analysts said the measure appears to be a retaliatory response by Beijing against companies complying with U.S. laws that ban the import of materials and products from Xinjiang suspected of using Uyghur forced labor.

“China is attempting to retaliate against U.S. sanctions on Xinjiang region by imposing its own sanctions on companies that follow U.S. sanctions,” said Anders Corr, principal of the New York-based political risk firm Corr Analytics. “It’s a very bad idea.”

“Beijing is trying to tell Calvin Klein not to follow U.S. law but to follow Chinese law,” he said.

China’s Ministry of Commerce said Tuesday that PVH Corp. must provide documentation and evidence within 30 days to show it did not engage in discriminatory practices over the past three years.

“The U.S. PVH Group is suspected of violating normal market trading principles and unreasonably boycotting Xinjiang cotton and other products without factual basis, seriously damaging the legitimate rights and interests of relevant Chinese companies and endangering China’s sovereignty, security and development interests,” the ministry said in a statement.


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