China to investigate parent company of Calvin Klein, Tommy Hilfiger

China will initiate an investigation into PVH Corp, the parent company of Calvin Klein and Tommy Hilfiger, under the working mechanism of its unreliable entities list, said the Ministry of Commerce in an online statement.

Relevant agencies have recently submitted suggestions and reports to the government, alleging that the New York City headquartered PVH Corp has, without factual basis, violated normal market trading principles by unjustly boycotting products such as cotton produced by China’s Xinjiang Uygur autonomous region, said the statement.

This has seriously harmed the legitimate rights and interests of related Chinese companies and endangered China’s sovereignty, security and development interests, said the statement.

In accordance with the provisions of the unreliable entities list, the government has decided to launch an investigation into PVH Corp’s actions and will take measures based on the probe’s findings.

By implementing the unreliable entities list to target rule-breakers, China is able to create a dependable market environment for businesses that comply with regulations.

The Chinese government remains committed to advancing high-level opening up, firmly supporting the multilateral trade system, and safeguarding the legitimate rights and interests of all market participants, said the head of the ministry’s Bureau of Industry, Security, Import and Export Control in the statement.

China consistently handles issues related to the unreliable entities list with caution, targeting only a very small number of foreign entities that violate market rules and Chinese laws. Foreign entities that operate with integrity and in compliance with the law have nothing to worry about, said the commerce official.

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