China to probe Calvin Klein, Tommy Hilfiger parent firm over Xinjiang cotton

China has launched an investigation into the parent company of clothing brands Calvin Klein and Tommy Hilfiger for “discriminatory measures” related to products from its far western Xinjiang Uygur autonomous region, a move likely to compound already fraught trade tensions with the United States.

After reports from various agencies to the UEL office, the ministry said, the American firm is suspected of “violating normal market transaction principles by arbitrarily boycotting Xinjiang cotton and other products,” an action the ministry said “severely undermines the legitimate rights and interests of Chinese enterprises” and “threatens China’s sovereignty, security and development interests.”

Per the ministry’s statement, PVH must submit written materials related to the case from the past three years within 30 days. During the period, PVH may present its defence, while the UEL office will conduct its own investigation, including inquiries and document reviews.

The ministry said its reactivation of the UEL mechanism was not taken lightly, and its use is intended only for “a small number of foreign entities that undermine market rules and violate Chinese law.