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Photo: iStock / NoDerog
China has placed Calvin Klein and Tommy Hilfiger parent company PVH Corp. on its "unreliable entities" list, a move that could lead to the clothing giant being forced out of the country altogether.
China added PVH to its "unreliable entities" list on February 4, CNBC reports, allowing the Chinese government to fine the company, revoke work permits, shut down its stores and manufacturing, deport its employees living and working in the country, and ban it from importing and exporting products and materials. The decision to blacklist PVH also came within a day of the Trump administration enacting a 10% tariff on all imports into the U.S. from China.
In a statement to CNBC, PVH said that it was "surprised and deeply disappointed" by China's decision, and asserted that it remains in "strict compliance" with the country's laws and regulations. China is home to 18% of PVH's factories and suppliers, making up the largest share of the company's production of any country.
China opened a probe in September 2024 into allegations that PVH had unfairly refused to use cotton sourced from the country's controversial Xinjiang region, with China's Commerce Ministry accusing the company of "violating normal market transaction principles." According to PVH's supply chain guidelines, the company prohibits all direct and indirect sourcing from Xinjiang, where the provincial government has been known to use religious and ethnic minorities for forced labor. In 2022, the U.S. banned all imports from Xinjiang, four years after a report from the U.S. State Department that estimated that there were as many as two million Uyghurs, ethnic Kazakhs, and members of other Muslim groups being held in "prison-like conditions" at XUAR work camps.
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