Why China boycotts Western brands

The trade war between Western countries and China took a different turn recently. China's use of forced labour in the cotton industry prompted Western countries to impose ban on officials and entities in Xinjiang. Fashion companies, such as Nike, H&M, Burberry and Calvin Klein threatened to cut ties with Xinjiang cotton.

However, Chinese consumers received the brands’ response as a politicisation of a business process. In response, China issued a series of bans on goods from Western countries, specifically from H&M, Nike and Burberry, until they start buying cotton from China.

China boycott of Nike, H&M and Burberry

Several celebrities have terminated their endorsement deals with international brands that have vowed not to buy cotton from Xinjiang. The government has also drummed up support, while Chinese consumers, social media platforms and e-commerce sites joined forces to boycott international retailers, such as H&M and Burberry, as a retaliatory sanction.

Although the boycott is conducted by consumers and celebrities, there have been accusations that the Chinese government is behind the move. These companies have been condemned widely, especially H&M which publicly announced its stance to cut ties with Xinjiang cotton.

Cotton production in Xinjiang

Xinjiang is the largest cotton producing area in China. The market for Xinjiang cotton is a critical factor as far as international trade is concerned. Therefore, the boycott of Xinjiang cotton would deal the area a big blow in terms of market. Cotton production in the area has been mechanised, the packaging is intellectualised and the cotton seeding is carried out on a large scale.

Xinjiang produces nearly 20% of the world's cotton and is, therefore, a central part of the global supply chain (Bhala, 2020). Xinjiang is thus very important to China for the foreign exchange it generates and the jobs it create for the local people. Although the Xinjiang cotton boycott will directly affect employment and the market of Chinese cotton, the international brands will have much more to worry about.

Statistics show that 20% of cotton used in the world comes from Xinjiang, and these companies source cotton directly and indirectly from Xinjiang. The supply chain will most definitely be affected as long as the trade war between China and the US continues. According to Bhala (2020), Xinjiang accounts for 87% of China’s cotton production and is responsible for 1 in every 5 bales of cotton produced in the world.

Forced labour of Uyghurs

The US State Department claimed that nearly 800,000 Uyghur people have been detained in a ‘re-education centre’ in Xinjiang, where they had to undergo psychological indoctrination programmes. The detainees work in cotton farms and factories, and produce clothes for the domestic and foreign markets. The international brand's boycott of Xinjiang cotton is in line with the Forced Labour Convention. The convention requires all member countries to boycott products and supplies from countries where forced labour or compulsory labour is practiced (Moreau, 2018).

There have been several claims that the Uyghurs support or adopt religious extremism in their quest to find their cultural identity, and those advocating for religious separatism have always been detained and dealt with ruthlessly.