Calvin Klein Parent PVH, Illumina Put on China’s ‘Unreliable Entity’ List

Key Takeaways

• China’s Ministry of Commerce has put PVH and Illumina on its “unreliable entity” list.
• The two firms are accused of taking actions that harmed Chinese companies.
• Companies on the unreliable entity list could face business restrictions, fines, and other penalties.

Shares of Calvin Klein parent PVH (PVH) and biotech firm Illumina (ILMN) fell when China announced that the companies were being added to its “unreliable entity” list. 

The official Xinhua News Agency reported that the Ministry of Commerce has determined that both “have violated normal market trading principles, terminated regular trade with Chinese companies, and adopted discriminatory measures against Chinese companies, thus severely harming their legitimate rights and interests.” The news site didn’t give an explanation of what those two did to be singled out.

The Ministry of Commerce explained that the purpose of the unreliable entity list is for “safeguarding national sovereignty, security and development interests, maintaining fair and free international economic and trade order, protecting the legitimate rights and interests of enterprises, other organizations, and individuals of China.”

Those on the list could face penalties including import and export restrictions, fines, and the blocking of their employees from entering or exiting the country.

“We are surprised and deeply disappointed to learn of the decision from the Chinese Ministry of Commerce,” PVH said in a statement provided to Investopedia. “In our 20 years of operating in China and proudly serving our consumers, as a matter of policy, PVH maintains strict compliance with all relevant laws and regulations and operates in line with established industry standards and practices. We will continue our engagement with relevant authorities and look forward to a positive resolution.”

“Illumina has a long-standing presence in China, where we serve the local market through our advances in genomics that help improve human health,” it said in a statement. “Wherever Illumina operates, we comply with all laws and regulations. We are assessing this announcement with the goal of finding a positive resolution. In the meantime, we are committed to continuing to serve global health.” 

PVH shares, which slipped 1% late Tuesday morning, are at their lowest level since November 2023. Shares of Illumina sank 6% and are down 12% over the last year.

UPDATE—This story has been updated with company statements and the latest share price information.

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