No Cases Of Forced Labour Found: Li Ning

Chinese sportswear giant Li Ning says US authorities have made “incorrect and misleading” allegations in a statement which accuses the company of using North Korean labour in its supply chain.

“To date, during the operation and review process, the group has not discovered any cases of forced labour in the supplier management system,” the company said in a filing to the stock exchange on Wednesday.

US Customs and Border Protection (CBP) said this week that Li Ning goods had been detained at US ports since March 14 after an investigation indicated that the company had used North Korean labour.

Li Ning was required to provide evidence within 30 days that its merchandise was not produced with convict, forced or indentured labour, or its merchandise may be seized or forfeited.

The Countering America’s Adversaries Through Sanctions Act (CAATSA) prohibits the entry of goods involving North Korean labour anywhere in the world, unless evidence is provided that such goods are not made with forced labour.

In the statement, Li Ning said it will not respond to the allegations by the CBP and overseas speculations individually, saying the source of this information and its reliability have not been 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 the PRC, and upholds ethical standards,” the company said.

“In respect of labour utilisation, the group strictly prohibits and opposes any form of forced labour employed by its suppliers, and always upholds human rights and legal rights of labour. These are the basic principles for the group’s cooperation with all supplier partners.”