China's investigation into American clothing retailer PVH, parent company of Calvin Klein and Tommy Hilfiger, has raised concerns among foreign companies reliant on Chinese supply chains. The probe centers on alleged discriminatory actions against products from Xinjiang, a region known for forced labor and human rights abuses. This move signals China's intolerance for companies avoiding Xinjiang goods, putting multinationals in a difficult position amid global restrictions on Xinjiang imports. The investigation, utilizing China's Unreliable Entity List, highlights the risks for companies operating in Xinjiang. International firms face public relations challenges and potential backlash for sourcing from Xinjiang, a major global manufacturing hub. The situation has prompted some companies to reconsider their investments in China, with joint ventures in Xinjiang facing particular challenges. PVH has been given 30 days to respond to the allegations, with potential penalties including fines and export halts. Human rights groups have long urged companies to avoid Xinjiang products, leading to some firms pledging to cease sourcing from the region. The Chinese government's crackdown on investigations into labor conditions in Xinjiang complicates matters for companies trying to ensure ethical sourcing. The U.S. and other countries have imposed bans on Xinjiang imports due to human rights concerns, while China denies allegations of abuses, framing its programs as poverty alleviation efforts. The situation has left companies navigating a complex and ethically challenging landscape.