US holds Li Ning’s products at ports, citing use of North Korean labor
BEIJING, March 16 (Reuters) – Products made by Chinese sportswear giant Li Ning 2331.HK were detained at U.S. ports after an investigation found North Korean labor in the company’s supply chain, CBP said.
Li Ning was required to provide proof within 30 days that his merchandise had not been produced by convict labor, forced labor or indentured labor, or that it “might be subject to seizure. and forfeiture,” CBP said on its website.
CAATSA (Countering America’s Adversaries Through Sanctions Act) prohibits the entry of goods involving North Korean labor anywhere in the world, unless evidence is provided that such goods are not made with forced labor.
Li Ning did not immediately respond to Reuters’ request for comment on Wednesday.
CBP said the company’s products had been held at ports since March 14.
Li Ning generated 98.9% of its revenue from China and just 1.1% from overseas, according to its latest earnings report.
Earlier this month, Norway’s $1.3 trillion sovereign wealth fund said it had excluded Li Ning because of the “unacceptable risk” that the company was contributing to human rights abuses in Xinjiang, China. .
Chinese garment companies have come under scrutiny for their use of cotton from the Xinjiang region after reports of human rights abuses against Uyghur Muslims. China denies all these abuses.
In March last year, Li Ning told the Global Times newspaper that Xinjiang was an important raw material production area in its supply chain.
(Reporting by Sophie Yu, Brenda Goh; Editing by Stephen Coates)
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