In a significant move on Tuesday, China's Ministry of Commerce announced the addition of two U.S. companies, PVH Corp. and Illumina, Inc., to its unreliable entity list. The decision comes as a response to actions by the firms that allegedly violated market principles and harmed the legitimate rights and interests of Chinese enterprises.
According to the ministry's statement, both PVH Corp., a global apparel company, and Illumina, a leading biotechnology firm, have terminated regular trade with Chinese companies and implemented discriminatory measures. These actions are said to have severely affected Chinese businesses, prompting the government's response to safeguard national sovereignty, security, and development interests.
The unreliable entity list, established by China to address foreign companies that fail to comply with market rules and contractual obligations, enables the government to take necessary measures against entities that pose a threat to the country's interests. The specific repercussions for PVH Corp. and Illumina have not been detailed, but inclusion on the list can lead to restrictions on trade, investment, and visas.
A spokesperson for the Ministry of Commerce emphasized that China exercises prudence in applying the unreliable entity list, targeting only a select few foreign entities that disrupt market rules and violate Chinese laws. \"Foreign entities operating with integrity and in compliance with the law have no reason for concern,\" the spokesperson assured.
The spokesperson reiterated China's commitment to fostering a stable, fair, and predictable business environment. \"The Chinese government welcomes enterprises from around the world to invest and conduct business in China. We remain dedicated to providing favorable conditions for foreign companies that adhere to laws and regulations,\" the statement added.
The move signals China's firm stance on protecting its economic interests amid ongoing global trade tensions. Businesses and investors worldwide will be watching closely to assess the implications of this decision on international trade relations and market dynamics.
Reference(s):
cgtn.com
