Beijing fights forced labor claims, leading to U.S. ban on Chinese firms in Uyghur region.

• The Xinjiang trade blacklist of the US has been expanded to include a Chinese steel manufacturer and an artificial sweetener maker, due to allegations of forced labor.
• Beijing recently launched an investigation into the company that owns Tommy Hilfiger and Calvin Klein for discriminatory practices.

The U.S. has added two more Chinese companies to its Xinjiang trade blacklist due to allegations of forced labor. This move follows Beijing's response to accusations of human rights violations in the region and related "discriminatory measures" from American companies, which occurred one week ago.

On Wednesday, the Department of Homeland Security declared that two companies, a Chinese steel manufacturer and an artificial sweetener maker, would be added to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List.

The list now comprises 75 entities that prohibit imports made in full or in part in China's Xinjiang Uyghur Region, assuming that forced labor of China's Uyghurs and other ethnic minorities was utilized in their production.

Robert Silvers, under secretary for policy at the Department of Homeland Security, stated that today's actions demonstrate our dedication to eradicating forced labor from U.S. supply chains and preserving our principles of human rights for all.

The first companies in their respective industries to be added to the list are the firms. These companies have been involved in Xinjiang's large cotton and textile industries.

Silvers stated that no sector is immune to scrutiny, and they will persist in detecting organizations in various sectors and penalizing those who profit from exploitation and mistreatment.

In December 2021, the UFLPA was enacted following the US's assertion that it had amassed substantial evidence indicating the Chinese government was mistreating Uyghurs, a predominantly Muslim community, as well as other ethnic and religious minorities in Xinjiang for years.

Despite ongoing denials from China, the allegations have contributed to the trade decoupling of the world's two largest economies due to deteriorating relations between the U.S. and China.

Beijing has announced an investigation into the U.S. company that owns Tommy Hilfiger and Calvin Klein for suspected "discriminatory measures" against Xinjiang cotton companies.

PVH, a company with operations in both the U.S. and China, is among the growing number of foreign companies seeking to distance themselves from alleged forced labor in Xinjiang.

The Chinese Ministry of Commerce has accused the firm of violating market principles and boycotting cotton and other products from Xinjiang without evidence.

If PVH fails to respond to officials within 30 days, it may be added to China's "unreliable entities" list, potentially resulting in additional punishment and restrictions. The company, with a substantial presence in both China and the U.S., has confirmed contact with Chinese authorities, according to CNBC.

"PVH adheres to all applicable laws and regulations in every country and region where it operates, and will respond accordingly."

Previously, China has placed American companies, including defense contractors Lockheed Martin and Raytheon, on its entity list due to their involvement in Taiwan.

The European Union has approved new legislation prohibiting goods produced through forced labor and mandating large corporations to conduct human rights and environmental assessments on their international suppliers. Taiwan is reportedly considering a similar bill to the UFLPA.

— CNBC's Evelyn Cheng contributed to this report.