The Ministry of Commerce Photo: VCG

China's Ministry of Commerce (MOFCOM) said on Thursday that the investigation into US-based PVH Corp under the unreliable entity list mechanism is progressing in an orderly fashion according to Chinese law and China has been exercising prudence when handling issues related to the unreliable entity list. 

During the probe, the ministry will ensure PVH Corp's right to present statements and defenses. Appropriate decisions will be made based on the investigation results, He Yadong, a spokesperson from the MOFCOM told a press conference on Thursday.

The MOFCOM said in September that it will probe into PVH Corp under the unreliable entity list framework for taking suspected discriminatory measures and other practices that violate market trading principles regarding China's Xinjiang-related products, the Xinhua News Agency reported.

The US company, which owns fashion brands including Tommy Hilfiger and Calvin Klein, is suspected of boycotting cotton products from China's Xinjiang Uygur Autonomous Region without any factual basis and terminating normal transactions with Chinese companies as well as other organizations or individuals, the commerce ministry noted.

Such practices have "seriously undermined the legitimate rights and interests of relevant Chinese enterprises, and jeopardized China's sovereignty, security and development interests," said the ministry.

The spokesperson said China has been exercising prudence when handling issues related to the unreliable entity list, which targets only a few foreign entities that disrupt market rules and violate Chinese laws. 

The spokesperson reiterated that China welcomes enterprises from around the world to invest and operate in China, and is committed to providing a stable, fair, and predictable business environment for foreign-funded enterprises that comply with laws and regulations.

"Foreign entities that operate with integrity and abide by the law have no reason to be concerned," said the spokesperson.