Li Ning Photo:VCG

Chinese sportswear giant Li Ning has pushed back against what it calls "incorrect and misleading allegations" by the US against the company, after US authorities decided to detain Li Ning's sporting goods claiming that the firm "uses North Korean labor in its supply chain." 

US Customs and Border Protection (CBP) is detaining merchandise produced or manufactured by Li Ning at all US ports of entry, following a CBP investigation indicating Li Ning goods use North Korean labor in its supply chain, according to a CBP statement on its website on Tuesday.

"Such merchandise will not be entitled to entry unless the importer provides clear and convincing evidence that their merchandise was not produced with convict labor, forced labor, or indentured labor under penal sanctions within 30 days of notice of detention. If the company fails to provide clear and convincing evidence within this timeframe the merchandise may be subject to seizure and forfeiture," the CBP said.

In a statement posted on Wednesday, Li Ning said that the CBP statement and speculation contain incorrect and misleading allegations concerning the company's operation, adding that it would not respond to the speculations or allegations individually as the source of the information and reliability were not disclosed.

"As a professional sports brand company, the Group has a sound corporate governance system in place, strictly complies with the laws, regulations and compliance policies of China, and upholds ethical standards," the Chinese firm said.

Regarding labor utilization, Li Ning said it strictly prohibits and opposes any form of forced labor employed by its suppliers, and always upholds human rights and legal rights of workers, which are the basic principles for the company's cooperation with all supplier partners. 

"To date, during the operation and review process, the company has not discovered any case of forced labor in the supplier management system," it noted.

Experts told the Global Times that the US' groundless allegations are just another way of oppressing Chinese firms, as the US has been cracking down on Chinese companies with various excuses, including forced labor claims.

"The reported 'forced labor' in Li Ning is just another excuse for unreasonable US sanctions on Chinese goods," Lü Chao, an expert on the Korean Peninsula at the Liaoning Academy of Social Sciences, told the Global Times on Thursday, adding that legal hiring of North Korean workers is not against relevant Chinese laws and regulations and could help the workers earn income.   

Asked about the US' move against Li Ning, Zhao Lijian, a spokesperson for the Chinese Foreign Ministry, said on Wednesday that he was not aware of the situation, but added that "China firmly opposes any form of long-arm jurisdiction and unilateral sanctions."