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China's blacklisting of PVH (Calvin Klein, Tommy Hilfiger) and Illumina marks the first time American companies with major Chinese operations have been targeted on national security grounds, signaling an escalation in trade tensions.
The blacklisting came in response to Trump's imposition of additional 10% tariffs on Chinese imports, alongside Beijing launching an antitrust probe into Google.
A record 30% of American Chamber of Commerce member companies were considering or already moving operations out of China, according to a recent survey.
China's "unreliable entity list,&q… Đọc thêmuot; introduced in 2020, mirrors the US "entity list" and could result in fines, trade bans, and restrictions on staff movement for targeted companies.
PVH, which derives 6% of revenue and 16% of pre-interest/tax income from China, was specifically targeted over alleged "unreasonable boycotting" of Xinjiang cotton.
The blacklisting's implications remain unclear, leaving approximately 1,000 PVH employees in China uncertain about their future.
China's Commerce Ministry has declined to specify potential sanctions, stating only that companies operating with integrity have "nothing to worry about."
The move contradicts China's public stance on wanting more foreign investment, creating increased uncertainty for multinational companies operating in the country.
The blacklisting strategy appears selective, with China typically avoiding targeting market leaders to minimize domestic employment impact.
US companies were already struggling to navigate rising Beijing-Washington tensions before this latest escalation in trade conflicts.
