Bloomberg (March 16) reported that Merchandise made by Chinese sportswear giant Li Ning
Co. has been detained at U.S. ports, after an investigation indicated the company used North
Korean labour in its supply chain. The action against Li Ning Sporting Goods was effective
March 14, U.S. Customs and Border Protection said in a statement. U.S. Customs said some
Li Ning goods can enter the U.S. if the company “provides clear and convincing evidence that
their merchandise was not produced with convict labour, forced labour, or indentured labour
under penal sanctions within 30 days of notice of detention.” Otherwise, the merchandise may
be subject to seizure and forfeiture, it said. Li Ning shares fell as much as 3.2% in early Hong
Kong trading, before erasing the losses and rising 4.2% to HK$53.10 at 9:42 a.m. local time.
The stock is down almost 38% this year.
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