Soon after giving out a statement on forced labour in Xinjiang, Swedish fashion retailer H&M was forced to close 20 stores in China.
Recently, several companies including H&M and Nike are facing pressure after they said that they were concerned about allegations that forced labour has been used to produce cotton in Xinjiang.The ruling Communist Party lashed out at H&M, Nike and other shoe and clothing brands last week after the United States, the European Union, Britain and Canada imposed travel and financial sanctions on officials accused of abuses in Xinjiang in China’s northwest.
H&M has shut down about 20 of its 500 outlets in the communist country. Some of the closures might have been the result of Chinese landlords forcing out the shops, while local consumers vowed to boycott the brand.
According to media reports, Chinese media had called for Chinese boycotts of Swedish multinational retailer H&M, sports apparel powerhouses Nike and Adidas; New Balance; Burberry and other members of the Better Cotton Initiative (BCI) that have voiced concerns or pledged not to use supply chain components produced in Xinjiang.
H&M, the world’s second-largest clothing retailer, has been pulled from major e-commerce stores in China and blocked by several major navigation, review and rating apps.
Dozens of Chinese celebrities also terminated contracts or said they would cut ties with these brands, including Nike, Adidas, Puma, Converse, Calvin Klein, Tommy Hilfiger, and Uniqlo — a move lauded by state media.
Source: Financial Post.us