Joerg Wuttke, Head, European Chamber of Commerce in China has advised Hennes & Maurtiz AB and other brands, who refuse to use cotton from Xinjiang, to lay low and let the Chinese anger pass else they face risks from political issues. Chinese social-media users gave a call to boycott H&M products last week after discovering an undated statement from the company saying it would not use cotton from the far western region of Xinjiang over forced-labor concerns.
The retailer was criticized by the Communist Youth League and the People’s Liberation Army, and outlets vanished from Apple Maps and Baidu Maps searches. Some of the H&M’s stores in smaller cities were closed by landlords.
Other Western brands like Nike Inc. and Adidas AG are also being criticized for their pledges not to use Xinjiang cotton. The region supplies around 80 per cent of the material for China. Wuttke said, the backlash could damage Beijing in the long run by jeopardizing Chinese jobs.