China initiates investigation into U.S. company suspected of market discrimination
China's Ministry of Commerce announced on Tuesday that it has initiated an investigation into U.S. company PVH Corp. under the unreliable entity list framework. This action is based on suspicions of discriminatory measures and practices that allegedly violate market trading principles concerning products related to Xinjiang.
TroibNews 
China's Ministry of Commerce announced on Tuesday the initiation of an investigation into U.S. company PVH Corp. under the framework of the unreliable entity list due to suspected discriminatory actions and practices that violate market trading principles related to products from Xinjiang.
PVH Corp., known for its fashion brands such as Tommy Hilfiger and Calvin Klein, is accused of boycotting cotton products sourced from China's Xinjiang Uygur Autonomous Region without any factual basis and ceasing transactions with Chinese companies and individuals, according to the ministry.
The ministry stated that such actions have "seriously undermined the legitimate rights and interests of relevant Chinese enterprises and jeopardized China's sovereignty, security and development interests," as conveyed by a spokesperson.
The investigation stems from recent reports from pertinent organizations, and PVH Corp. is required to submit information to the unreliable entity list mechanism office within 30 days from the announcement to clarify whether it has engaged in discriminatory practices regarding Xinjiang-related products over the past three years, according to the ministry.
Additionally, the ministry mentioned that organizations or individuals can report evidence of the company's violations of market principles, and appropriate measures will be implemented based on the investigation’s findings.
The unreliable entity list system was established by China in September 2020 to safeguard national interests and maintain a favorable business environment. However, it wasn't until February 2023 that the Chinese government began adding foreign entities to the list.
The ministry clarified that China has approached the management of the unreliable entity list with caution, targeting only a select few foreign entities that violate Chinese laws and disrupt market rules.
The spokesperson underscored the Chinese government's commitment to promoting high-standard openness, maintaining 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," added the spokesperson.
Ian Smith contributed to this report for TROIB News
PVH Corp., known for its fashion brands such as Tommy Hilfiger and Calvin Klein, is accused of boycotting cotton products sourced from China's Xinjiang Uygur Autonomous Region without any factual basis and ceasing transactions with Chinese companies and individuals, according to the ministry.
The ministry stated that such actions have "seriously undermined the legitimate rights and interests of relevant Chinese enterprises and jeopardized China's sovereignty, security and development interests," as conveyed by a spokesperson.
The investigation stems from recent reports from pertinent organizations, and PVH Corp. is required to submit information to the unreliable entity list mechanism office within 30 days from the announcement to clarify whether it has engaged in discriminatory practices regarding Xinjiang-related products over the past three years, according to the ministry.
Additionally, the ministry mentioned that organizations or individuals can report evidence of the company's violations of market principles, and appropriate measures will be implemented based on the investigation’s findings.
The unreliable entity list system was established by China in September 2020 to safeguard national interests and maintain a favorable business environment. However, it wasn't until February 2023 that the Chinese government began adding foreign entities to the list.
The ministry clarified that China has approached the management of the unreliable entity list with caution, targeting only a select few foreign entities that violate Chinese laws and disrupt market rules.
The spokesperson underscored the Chinese government's commitment to promoting high-standard openness, maintaining 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," added the spokesperson.
Ian Smith contributed to this report for TROIB News
