China's Commerce Ministry announced it has placed PVH Corp. on its 'unreliable entity list.' This action was taken after the company allegedly engaged in 'discriminatory measures against Chinese enterprises' and 'damaged' legitimate rights and interests of Chinese companies.
The listing is a direct consequence of China's preliminary findings that PVH engaged in 'improper' conduct related to the Xinjiang region. This move by China's government could lead to fines or restrictions on PVH's ability to operate, sell, or invest in Mainland China.
PVH generates approximately 6% of its 2024 revenue and 20% of its 2024 income before interest and taxes from China. Inclusion on this list represents a material geopolitical risk and could significantly impact the company's financial performance in the region.
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