China’s Ministry of Commerce announced on Tuesday the launch of an investigation into U.S. company PVH Corp. under the unreliable entity list framework. The firm is suspected of engaging in discriminatory practices that violate market trading principles concerning products related to the Xinjiang Uygur Autonomous Region.
PVH Corp., the owner of renowned fashion brands such as Tommy Hilfiger and Calvin Klein, is alleged to have boycotted cotton products originating from Xinjiang without factual basis. The company is also accused of terminating transactions with Chinese enterprises, organizations, and individuals.
A spokesperson for the Ministry stated, “Such practices have seriously undermined the legitimate rights and interests of relevant Chinese enterprises and jeopardized China’s sovereignty, security, and development interests.”
The investigation stems from recent reports submitted by relevant organizations. PVH Corp. is required to provide information to the office of the unreliable entity list mechanism within 30 days from the announcement date. The company must clarify whether it has taken any discriminatory measures against Xinjiang-related products in the past three years.
The Ministry encourages organizations or individuals to report and provide evidence regarding any violations of market principles by the company. Appropriate measures will be taken based on the investigation’s findings.
China implemented the unreliable entity list system in September 2020 to safeguard its national interests and business environment. The system targets a limited number of foreign entities that disrupt market rules and violate Chinese laws. The Ministry emphasized that the country handles issues related to the list with prudence, ensuring it only affects entities engaging in specific violations.
The spokesperson reaffirmed China’s commitment to advancing high-standard opening up, upholding the multilateral trade system, and protecting the legitimate rights and interests of all market participants. “Foreign entities that operate with integrity and abide by the law have no reason to be concerned,” the spokesperson concluded.
Reference(s):
China opens probe into U.S. firm suspected of market discrimination
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