Chinese netizens have called for the ouster of Sweden’s fashion retailer H&M from the Chinese market after they found the company prohibited sourcing products from Xinjiang, citing so called forced labor concerns in the cotton-producing region amid the latest wave of Western sanctions on China. The boycott is now spreading to other Western companies, which are boycotting supplies from Xinjiang. They include Nike, Adidas, and other members of the Better Cotton Initiative (BCI), a Switzerland-based non-profit organization that promotes sustainable cotton production. More than 30 Chinese celebrities announced they would end their endorsement contracts with the brands listed on the BCI website. The BCI has 2,100 members worldwide, of which nearly 500 are from China, including five retailers and brands, and 485 suppliers and manufacturers. Consumers said they would stop buying Nike and will support local brands such as Li Ning and Anta, while others told Adidas to leave China. Anta Sports Products said it is withdrawing from BCI and will continue to use cotton from Xinjiang. 

China produces about 22% of the world’s cotton. Xinjiang manufactured 5.2 million metric tons of cotton during the 2020-21 season, about 87% of China’s total production. More than 50% of farmers in Xinjiang grow cotton, and over 70% of these farmers are members of ethnic minority groups including Uyghur, Kazak and Hui.  China still needs to import about 2 million tons of cotton every year from countries including Brazil and India. As of the end of 2019, Xinjiang had 808 cotton processing enterprises, accounting for 84% of the country’s total, according to the China National Textile and Apparel Council.

The consumer blowback in China started with a boycott of H&M. Consumers can no longer check out H&M products on some online platforms. On Taobao.com and JD.com, searches for “H&M” return no results. The mobile phone app stores of Xiaomi, Huawei and Vivo have removed H&M’s app, while Baidu map and Dianping.com blocked search results for their stores. Huang Xuan and Song Qian, two Chinese Brand Ambassador of H&M with millions of followers on Weibo, have cut cooperation with the company.

H&M said in March 2020 that it is deeply concerned by reports of forced labor and discrimination of ethnic and religious minorities in Xinjiang, and it strictly prohibits any type of forced labor in the supply chain, regardless of the country or region. The company said if it discovers and verifies a case of forced labor at a supplier it works with, it will take immediate action and, as an ultimate consequence, terminate the business relationship. Although the statement has been on its official website for more than a year, it has triggered a fresh round of attention as the EU recently imposed sanctions over Xinjiang affairs. Some internet users said “such suicidal behavior” deeply offends the feelings of the Chinese people, and the company could not earn money in the Chinese market. Netizens also left remarks on the official Weibo account of H&M to show their outrage, including comments such as “I heard that you are boycotting Chinese cotton, then I will boycott your products.” The Communist Youth League of China (CYLC) slammed H&M’s comment in a post on its Weibo account, saying “spreading rumors to boycott Xinjiang cotton while also wanting to make money in China? It is wishful thinking!” In another post, the CYLC used the remarks made by Chinese senior diplomat Yang Jiechi at last week’s Alaska meeting with U.S. officials, in which he said that “the Chinese people won’t accept this,” referring to the U.S. condescending attitude towards China. Xinjiang cotton “won’t accept this,” the CYLC said in the post, urging H&M to take off its colored glasses and immediately stop spreading false information about Xinjiang. 

“H&M would rather believe the lies spread by a few people than hear the voices of billions of Chinese people, and would not go to Xinjiang to take a look. What is the intention of such manipulation?,” the official People’s Daily newspaper wrote. Although the Chinese market is large, any malicious slander is not welcome here; national interests are above all else, and such behavior is doomed to be wishful thinking, the newspaper added. “The so-called forced labor in Xinjiang is nonexistent and entirely imaginary. The spotless white Xinjiang cotton brooks no slander,” Ministry of Commerce Spokesman Gao Feng said. “We hope these companies will respect the law of the market, rectify their erroneous actions and avoid politicizing business issues,” Gao added.

H&M China said in an announcement that the group has always upheld the principles of openness and transparency in the management of the global supply chain, and does not take any political position, the Global Times reports. H&M had 520 stores and USD1.4 billion in sales in China in 2019. China is its third-largest market after Germany and the United States.

This overview is based on reporting by the China Daily, Shanghai Daily, Global Times and The Guardian.