MOFCOM investigates US firm PVH for suspected boycott of Xinjiang products

China's Ministry of Commerce (MOFCOM) on Tuesday said it had launched an investigation into U.S. company PVH under the Unreliable Entity List System for suspected violation of normal market trading principles regarding products related to Northwest China's Xinjiang Uygur Autonomous Region, suspending normal transactions with Chinese firms, organizations and individuals, and adopting discriminatory measures, along with other issues.

PVH, the parent company of Calvin Klein and Tommy Hilfiger, must provide documentation and evidence within 30 days regarding whether it has taken discriminatory measures against Xinjiang-related products over the past three years, the MOFCOM said in a statement.

In a separate statement responding to media questions, the MOFCOM said that the U.S. firm is suspected of violating normal market trading principles, and boycotting cotton and other products from Xinjiang without a factual basis, as suggested and reported by relevant agencies.

The measures taken by PVH have seriously undermined the legitimate rights and interests of Chinese enterprises and jeopardized China's sovereignty, security and development interests, according to the MOFCOM.

Responding to a media question regarding the country's reuse of the Unreliable Entity List, MOFCOM said that the Chinese government has been unswervingly promoting high-level opening-up, upholding the multilateral trading system, and safeguarding the legitimate rights and interests of all market operators.

China has always prudently handled the Unreliable Entity List while targeting only a very small number of foreign entities that have violated market rules and Chinese laws, the MOFCOM said, adding that foreign entities obeying Chinese laws do not have to worry about the list.

Global enterprises operating in China have to obey Chinese regulations, including the non-discriminatory treatment of products and enterprises from different places, which is an important foundation for establishing the Unreliable Entity List system, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Tuesday.

Zhou noted that the investigation aims to find out the facts and gain accurate information, adding that responsible authorities are handling relevant cases cautiously without affecting others.