China has added two U.S. firms, PVH Corp. and Illumina Inc., to its unreliable entity list, the Ministry of Commerce announced on Tuesday. This move marks a significant development in the ongoing trade relations between China and the United States.
According to the ministry's statement, the two companies have \"violated normal market trading principles, terminated regular trade with Chinese companies, and adopted discriminatory measures against Chinese companies,\" actions that have \"severely harmed their legitimate rights and interests.\"
The decision was made \"to maintain national sovereignty, security, and development interests in accordance with relevant laws and regulations,\" the statement added.
The unreliable entity list mechanism enables China to take corresponding measures against foreign entities that disrupt market rules and violate Chinese laws. Specific actions against PVH Corp. and Illumina Inc. will be based on relevant laws and regulations, the ministry noted.
In response to media inquiries, a Ministry of Commerce spokesperson emphasized China's cautious approach in handling matters related to the unreliable entity list. \"China has been prudent in handling matters related to the unreliable entity list, which targets only a few foreign entities that disrupt market rules and violate Chinese laws,\" the spokesperson said.
The spokesperson reassured foreign businesses: \"Foreign entities operating with integrity and in compliance with the law have no reason for concern.\"
\"The Chinese government, as always, welcomes enterprises from around the world to invest and conduct business in China,\" the spokesperson continued. \"It remains committed to providing a stable, fair, and predictable business environment for foreign companies that adhere to laws and regulations.\"
