China Blacklists Calvin Klein and Tommy Hilfiger Owner Amid Trade Tensions with the US

The Chinese government has officially blacklisted PVH Corp, the owner of global fashion brands Calvin Klein and Tommy Hilfiger, as trade tensions with the United States (US) escalate.

This move comes just days after then-US President Donald Trump imposed a 10% tariff on Chinese imports, prompting Beijing to retaliate with new tariffs on US energy and agricultural equipment imports.

According to a CNBC International report on Saturday (February 8, 2025), China has added PVH Corp to its "unreliable entities list", which allows authorities to impose fines and restrict the company’s import and export activities.

PVH Investigated Over Use of Xinjiang Cotton

PVH’s blacklisting in China is reportedly linked to allegations that the company refused to source cotton from Xinjiang, a region that has drawn international scrutiny over concerns of forced labor practices.

"China wants to show the US that it will not stand idle and is willing to take actions that harm major American corporations or businesses with significant US interests," said Michael Kaye, a partner at Squire Patton Boggs, who has over 30 years of experience in international trade law.

Kaye noted that PVH may be forced to shut down dozens of its stores in China, while its online business could also be at risk. Additionally, PVH employees in China might face deportation.

As of now, it remains unclear whether China will also blacklist PVH in Hong Kong, where the company’s Asia-Pacific headquarters is located.

PVH Responds: Shocked and Will Cooperate with Chinese Authorities

In response to the blacklisting, PVH Corp expressed shock and disappointment over the Chinese Ministry of Commerce’s decision.

"For over 20 years, we have proudly served our customers in China while maintaining strict compliance with all relevant laws and regulations. We operate in accordance with established industry standards and practices," PVH said in an official statement.

The company also assured that it would continue working with the relevant authorities and hopes to reach a positive resolution.

China Accounts for 6% of PVH Sales, But Supply Chain Risks Loom

China remains a key market for PVH, contributing 6% of its total sales and 16% of its earnings before interest and taxes (EBIT) in 2023. However, the biggest concern for PVH is not just sales, but its heavy reliance on Chinese manufacturing.

According to a December 2024 disclosure, 18% of PVH’s total production comes from China, making it the company’s largest manufacturing hub.

Retail analyst and GlobalData Managing Director, Neil Saunders, warned that China’s move could severely impact PVH’s operations.

"This could be a very, very disruptive situation for PVH. They will certainly scramble to find new manufacturing capacity. While they can eventually shift production elsewhere, two key issues remain. First, given the just-in-time nature of many supply chains, they may experience stock shortages during the transition. Second, quality control could become a major concern," he explained.

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