Chinese consumers are willing to retaliate over perceived national slights
- The consumer and celebrity boycotts of multinationals over refusal to use cotton from Xinjiang reveals that Chinese no longer opt blindly for foreign brands and that doing business in China means more than compliance with regulations
Consumers can be no match for the power of multinational business. But when the world’s biggest consumer market takes on Western capitalism, it can escalate into an international confrontation, like the one now playing out in China through consumer and celebrity boycotts of multinationals over refusal to use cotton from Xinjiang.
This is what comes from mixing politics with business.
Swedish international fashion retailer H&M was the first to face a boycott on the mainland after saying last year it did not source cotton from Xinjiang, the restive far western region where activists have accused China of using Muslim Uygurs as forced labour and other human rights abuses. The issue came to a head after the West imposed sanctions on China over its Xinjiang policies.
H&M’s products have been removed from major e-commerce platforms. The backlash has spread, as state media postings named other companies such as Burberry, Nike, New Balance and Adidas among those that have also said they did not source Xinjiang cotton, under a sustainability programme called Better Cotton Initiative.
Celebrities have ended endorsement deals with international firms, including Hong Kong singer Eason Chan Yik-shun, who said he had ended all relationships with Adidas.
Beijing has repeatedly denied the allegations, pressing the firms to reverse course and respect the views of Chinese consumers.
The European Chamber of Commerce in China says the increased politicisation of business has caught more European companies between a rock and a hard place, or between Western perceptions of corporate social responsibility and the potential for being seen as anti-China. It is not clear how China, a trading giant with large reserves, would have an incentive for using forced labour in Xinjiang.
In fact it is subsidising the industry. That is not to say its motives are entirely altruistic. It wants to create jobs in Xinjiang to speed integration of the Uygurs. and boost the local economy.
Claims of abuse are based on unconfirmed or disputed witness accounts, many from activists, and satellite imagery appearing to show camps and factories. China has invited the Europeans to see at first hand for themselves. Sadly, the two sides have been unable to agree on conditions for such a visit.
China’s Big Tech erase H&M from the country’s internet
The world needs more fact-finding and evidence for one version or the other.
Multinationals need to realise Chinese no longer opt blindly for foreign brands. They are now on notice that doing business in China means more than compliance with regulations.
They should be aware of the power of Chinese consumers and their willingness to retaliate against perceived national slights. That calls for respect for all customers, wherever they may be.
