CHINA placed Calvin Klein owner PVH and US gene sequencing company Illumina to a so-called blacklist of entities, among a series of retaliatory actions after new tariffs ordered by President Donald Trump took effect on Tuesday (Feb 4).
The Ministry of Commerce said that PVH and Illumina infringed the principles of market transactions and undertook damaging actions against Chinese companies, without elaborating.
Shares in the Calvin Klein owner were largely unchanged. Illumina fell 6.1 per cent as at 12.54 pm New York time.
An Illumina spokesperson said the company is assessing the announcement in hopes of finding a “positive resolution”. A spokesperson for PVH did not respond to a request for comment.
PVH is also the parent of the Tommy Hilfiger brand and has been under Chinese regulatory investigation since September for allegedly boycotting cotton from the Xinjiang region, though the statement did not mention the issue. Illumina is the leading global provider of genetic sequencing, and a rival to Chinese biotech giant BGI Genomics.
It’s unclear what exact consequences the two companies will now face. Entities on the list may be hit with punitive action such as restrictions on sales, activity and investment in China in theory, but there’s been little precedent as previous companies placed in the category had no business presence in the country.
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PVH and Illumina both have sizeable operations in China, which now face the risk of being cut off.
The apparel maker generated approximately 6 per cent of its revenue and roughly 16 per cent of its earnings before taxation and interest from the country in 2023, according to executives on the company’s recent earnings call.
For Illumina, sales in Greater China accounted for 8.5 per cent of its 2023 revenue, according to company filings. As recently as December, it touted new deals with Chinese researchers, hospitals and commercial companies and announced plans to accelerate local manufacturing of its genetic sequencing instruments.
China’s actions against Illumina come after BGI was targeted by US legislators: in 2024 it was named in a bill that would restrict its business with American customers, although that bill, known as the Biosecure Act, ultimately failed to pass. BLOOMBERG
