An investigation into the U.S. firm PVH Corp., led by China's unreliable entity list mechanism, is advancing in accordance with the law and in an orderly manner, the Ministry of Commerce (MOC) said Thursday.

"We will fully safeguard PVH's rights to make statements and defenses during the investigation," MOC spokesperson He Yadong told a press conference.

After the investigation, the mechanism office will make decisions based on the results in accordance with the regulations on unreliable entity list, the spokesperson added.

The U.S. company, which owns fashion brands like 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, according to the ministry.

China introduced the unreliable entity list mechanism in September 2020 to protect its national interests and business environment. The spokesperson said China has been prudent when handling issues related to the unreliable entity list, which targets only a few foreign entities that disrupt market rules and violate Chinese laws. He added that foreign entities that operate with integrity and abide by the law have no reason to be concerned.

The Chinese government, as always, welcomes enterprises from around the world to invest and do business in China, and is committed to providing a stable, fair and predictable business environment for foreign companies that abide by the law and regulations, said the spokesperson.