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After H&M, Nike feels Chinese social media heat over Xinjiang

Stock MarketsMar 25, 2021 08:52AM ET
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3/3 © Reuters. Workers install a Nike logo lamp outside the Wukesong Arena in Beijing 2/3

BEIJING (Reuters) - Nike (NYSE:NKE) and Adidas (OTC:ADDYY) came under fire on Chinese social media on Thursday after Beijing's propaganda offensive against Swedish fashion brand H&M sparked by the company's expression of concern about labour conditions in Xinjiang.

The sportswear companies were the latest to be caught up in a backlash prompted by a government call to stop foreign brands from tainting China's name as internet users found statements they had made in the past on Xinjiang.

Chinese state media had singled out H&M on Wednesday over a statement that was reported last year in which the Swedish retailer said it was deeply concerned by reports of accusations of forced labour in Xinjiang, and that it did not source products from the Chinese region.

It was unclear why the H&M statement was back in the public eye but diplomatic tensions between China and the West have been rising.

Earlier this week, China denied allegations of human rights abuses by its officials in the western region of Xinjiang after the European Union, United States, Britain and Canada imposed sanctions on the officials.

Beijing hit back with retaliatory sanctions on European lawmakers, scholars and institutions.

Some internet users said they would stop buying Nike and will support local brands such as Li Ning and Anta, while others told Adidas to leave China.

Shares of Anta Sports Products Ltd and Li Ning Co surged, while shares in Adidas, Inditex (MC:ITX) and H&M fell when European markets opened on Thursday.

State tabloid Global Times said Spain's Inditex, owner of Zara, had "quietly removed" a statement on Xinjiang from its English and Spanish-language websites.

Inditex did not respond to a Reuters request for comment.

BOYCOTT

Internet users also targeted the Better Cotton Initiative (BCI), a group that promotes sustainable cotton production which said in October it was suspending its approval of cotton sourced from Xinjiang for the 2020-2021 season, citing human rights concerns.

BCI members include Nike, Adidas, H&M and Japan's Fast Retailing.

"If you boycott Xinjiang cotton, we'll boycott you. Either Adidas quits BCI, or get out of China," one internet user wrote.

Nike, Adidas and the BCI did not respond to requests for comment.

H&M said on Wednesday it respected Chinese consumers and that it was committed to long-term investment and development in China.

But by Thursday morning, H&M did not exist on some Chinese store locator maps. Searches for H&M stores on Baidu (NASDAQ:BIDU) Maps yielded no results. The retailer's official store on Alibaba (NYSE:BABA)'s Tmall, an e-commerce platform, was inaccessible.

At a daily media briefing at China's foreign ministry, spokeswoman Hua Chunying, when asked about H&M, held up a photograph of Black Americans picking cotton.

"This was in the U.S. when Black slaves were forced to pick cotton in the fields," she said.

Hua then held up a second photograph of cotton fields in Xinjiang.

"More than 40% of the cotton in Xinjiang is harvested by machinery, so the alleged forced labour is non-existent."

People's Daily, the main newspaper of the Communist Party, rolled out a social media campaign in support of cotton sourced from Xinjiang.

The graphic "I support Xinjiang cotton" posted by the newspaper on the Twitter-like microblog Weibo (NASDAQ:WB) has since attracted about 2.2 million likes.

Japanese retailer Muji, owned by Ryohin Keikaku Co, told the Global Times that it uses Xinjiang cotton, winning praise from Chinese internet users, who lauded the firm's "survival instincts".

Ryohin Keikaku recently conducted due diligence for Xinjiang factories, with which it has an indirect relationship via its supply chain, and also commissioned an independent audit group to make onsite audits, but found no significant issues, the company told Reuters on Thursday.

After H&M, Nike feels Chinese social media heat over Xinjiang
 

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Comments (11)
Yong Huang
Yong Huang Mar 26, 2021 8:21AM ET
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what a move 🤣
Yong Huang
Yong Huang Mar 26, 2021 8:20AM ET
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what a stupid move
Watru Branson
Watru Branson Mar 25, 2021 9:37AM ET
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US is good to say fake info caused market volatile. Did they do investigation before talk with ppl. If no support by China market... Ur growth is limited.
Joel Hauser
Joel Hauser Mar 25, 2021 6:19AM ET
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More jobs are coming back baby woo hoo.President Joe Biden promised that he has many plans for Pittsburg.God bless the president.Lets hope the clothing and shoe business doesn't go from china to Bangladesh,india ,phillipines and thailand to satisfy some greedy republican goons.
Simon Liu
Simon Liu Mar 25, 2021 6:10AM ET
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Those who are yelling to stop buying from Xinjiang, are those who are really harming Xinjiang and Discrimination against ethnic minorities Uighurs.
Darren Ikin
Darren Ikin Mar 25, 2021 6:10AM ET
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Thanks ccp spokesman
HD HD
HD HD Mar 25, 2021 6:10AM ET
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I'm boycotting all made in china products.
Xiaojun Qian
Xiaojun Qian Mar 25, 2021 6:10AM ET
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HD HD  im hoping you talk to talk and walk to walk
Simon Liu
Simon Liu Mar 25, 2021 6:07AM ET
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Those who are healing to stop buying from Xinjiang, are those who are really harming Xinjiang and Discrimination against ethnic minorities Uighurs.
Simon Liu
Simon Liu Mar 25, 2021 6:04AM ET
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If you noticed that all the voices against H&M and BCI are from Chinese Social Networks, you will under stand they are the real voices of ordinary Chinese people. So, please respect the Human Right of Chinses people, and move your fingers away from them.
Noel Ho
Noel Ho Mar 25, 2021 5:03AM ET
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We can look at Hong Kong and Taiwan, two different worlds, one is ruled by China and the other is not.
De Will
WhatMatters Mar 25, 2021 5:03AM ET
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China = Cancel Culture on steroids
Gary SKY saw
Gary SKY saw Mar 25, 2021 4:30AM ET
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Just close your shop and move out from China.. China don't need you, what so special h&m, garbage brand
De Will
WhatMatters Mar 25, 2021 4:30AM ET
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The consistently broken/poor English language skills expose China bots every time
Gary SKY saw
Gary SKY saw Mar 25, 2021 4:30AM ET
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Lol.. Whatmatter means nothing matter, you must be an expert in English.. You don't need a bots to be here.. I only here because of you Mr expert.. Wow broken English.. Go back to your jungle
David David
David9 Mar 25, 2021 3:49AM ET
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I told you guys... the chinese youth and people are starting to see the evilness from outside their country and now they are getting smart...
Mr KP
Mr KP Mar 25, 2021 3:24AM ET
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only country that will do all bad and never accept , like Covid , pollution , south China sea and many more ..
David David
David9 Mar 25, 2021 3:24AM ET
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Give examples and proof... we waiting...
Edward Chong
Edward Chong Mar 25, 2021 3:24AM ET
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sorry mr wong. its only u waiting. not we.
David David
David9 Mar 25, 2021 3:24AM ET
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Can you provide proof that it is just me that is waiting?
Gary SKY saw
Gary SKY saw Mar 25, 2021 3:24AM ET
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Kp, you must smoking something, you are the holiest person in this word, you just won yourself another smoke
Gabriel Yu
Gabriel Yu Mar 25, 2021 3:24AM ET
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May Covid 19 serve you and ur family Well. lol
 
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