A Chinese industry association urged international companies to use cotton produced in Xinjiang after the head of Uniqloâs parent said the fashion retailer doesnât source fibre from the region.
Tadashi Yanai, the chief executive officer of Japanâs Fast Retailing Co., made the remark last week in an interview with the BBC, which led to calls on Chinese social media for a boycott of Uniqlo. The US has restricted trade on goods made in Xinjiang on concerns over forced labor, a claim disputed by China.
âWe hope international brands like Uniqlo can give Xinjiang cotton full respect and trust,â and resume its use to maintain the development of the global textile industry, the Xinjiang Uighur Autonomous Regionâs Cotton Association said in a statement on its official WeChat account on Thursday.
China is the worldâs top cotton consumer and producer, with more than 90 percent of its output coming from Xinjiang. The Asian nation is also the biggest textile exporter, but it faces increasing competition from neighbouring countries such as Bangladesh and Vietnam due to rising production costs.
Other global companies have been caught up in controversy relating to Xinjiang. H&M faced a nationalistic backlash in 2021 after a decision to stop using cotton from the region, while more recently, China said it would investigate US apparel maker PVH Corp. for suspected boycotting Xinjiang cotton.
PVH has cooperated fully with Chinaâs Ministry of Commerce, CEO Stefan Larsson said on an earnings call on Thursday, adding that itâs not yet known when the investigation will be concluded. The probe could result in fines and restrict business activities of PVH, the parent of fashion brands Tommy Hilfiger and Calvin Klein, which have a big retail presence in China.
For Uniqlo, a Fast Retailing spokesperson told Bloomberg News on Nov. 30 that the company was âwatching the situation carefully.â
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Uniqlo Parent Watching for China Boycott After CEOâs Xinjiang Remarks
Fast Retailing is closely monitoring to see if demand is affected after Tadashi Yanai said the Japanese company is not using cotton from the Chinese region where suppliers are exposed to forced labour risk.
