The news: China’s Ministry of Commerce is investigating PVH Group—parent of Calvin Klein and Tommy Hilfiger—over alleged discrimination against products from the Xinjiang region—an area many Western governments allege is home to forced labor.

• The probe could lead to Beijing placing PVH on an “unreliable entities list,” which would prohibit the company from selling to or buying from China, as well as investing in the country.
• If Beijing follows that path it would represent a major escalation of its unreliable entities tool, which has previously been used against American defense contractors over arms sales to Taiwan.