China's Ministry of Commerce has initiated an investigation into the U.S. apparel giant PVH Corp., the owner of well-known brands like Tommy Hilfiger and Calvin Klein. The probe falls under China's unreliable entity list framework, focusing on suspected discriminatory practices related to Xinjiang Uygur Autonomous Region cotton products.
The ministry alleges that PVH Corp. engaged in boycotting Xinjiang cotton without substantive evidence and terminated business dealings with Chinese companies and other entities. Such actions, according to the ministry, have severely undermined the legitimate rights and interests of Chinese enterprises, posing risks to China's sovereignty, security, and developmental goals.
The investigation was triggered by recent reports from relevant organizations. PVH Corp. is required to submit detailed information within 30 days to the office overseeing the unreliable entity list mechanism. This submission should clarify whether the company implemented any discriminatory measures against Xinjiang-related products in the past three years.
China established the unreliable entity list system in September 2020 to safeguard its national interests and maintain a fair business environment. Since its inception, only a handful of foreign entities have been added, with the first inclusion occurring in February 2023. The ministry emphasized that the list targets foreign firms that disrupt market rules and violate Chinese laws.
In a statement, a ministry spokesperson reaffirmed China's commitment to high-standard opening up, the multilateral trade system, and the protection of all market participants' legitimate rights. \"Foreign entities that operate with integrity and abide by the law have no reason to be concerned,\" the spokesperson added.
Reference(s):
China opens probe into U.S. firm suspected of market discrimination
cgtn.com
