China adds PVH Group to Unreliable Entity list over cotton sourcing

The decision was taken to “safeguard national sovereignty, security and development interests”, a statement by its ministry of commerce noted.

It follows the US imposition of a 10-per cent tariff on Chinese products, including additional tariffs on certain US goods starting on February 10.

The Unreliable Entity List working mechanism will take corresponding measures against these entities in accordance with relevant laws and regulations, the statement said.

The ministry had said in September last year that it would probe PVH Group for taking suspected discriminatory measures and other practices that violate market trading principles regarding China's Xinjiang-related products, a state-controlled media outlet in China reported.

The media outlet added that the US group is suspected of boycotting cotton products from Northwest China's Xinjiang Uygur Autonomous Region without any factual basis and terminating normal transactions with Chinese companies as well as other organisations or individuals.

China introduced the Unreliable Entity List in September 2020, but it was only in February 2023 that the foreign entities were first added to the list.

PVH has reportedly criticised the decision, saying it would work with Chinese authorities to resolve the issue.

Fibre2Fashion News Desk (DS)