For Companies in China, Pulling Out of Xinjiang Poses ‘Messy Dilemma’

An investigation by China of an American clothing retailer has escalated concerns among foreign companies about their dependence on Chinese supply chains and the future of their operations in the country. China’s Ministry of Commerce said last week that it was investigating PVH, the corporate parent of the Calvin Klein and Tommy Hilfiger brands, for allegedly taking “discriminatory measures” against products from Xinjiang, a region in China’s far west that produces a fifth of the world’s cotton. At issue is whether PVH violated Chinese law by pulling back from purchasing...