Uniqlo Faces Boycott Threats in China Over Xinjiang Remarks

Uniqlo, the global casual wear brand, is under fire in China following remarks by Tadashi Yanai, CEO of its parent company Fast Retailing, stating that the company does not source cotton from Xinjiang. This region has been at the center of international scrutiny over allegations of forced labor in recent years. Yanai’s statement, made during an interview with the British Broadcasting Corporation in Tokyo, was published on Thursday.

The comments quickly sparked backlash on the Chinese social media platform Weibo, where two hashtags related to the issue went viral. Numerous users criticized Uniqlo and vowed to boycott its products. Some accused the company of underestimating Chinese consumers, suggesting it was banking on the controversy fading quickly. One user questioned whether consumers could stand firm this time, implying that Uniqlo’s confidence stemmed from past instances where outrage had subsided.

China is Fast Retailing’s largest international market, with more than 900 Uniqlo stores on the mainland. The Greater China region, which includes Taiwan and Hong Kong, contributes over 20% of the company’s total revenue.

The Xinjiang controversy has become a major challenge for foreign companies operating in China. In 2021, Uniqlo’s competitor, H&M, faced a severe backlash after it posted a statement on its website expressing concern about forced labor allegations in Xinjiang and declaring it would stop sourcing cotton from the region. The response in China was swift and punitive: H&M’s products were removed from major e-commerce platforms, and its store locations disappeared from popular map apps.

While H&M bore the brunt of consumer anger, other Western brands such as Nike, Puma, and Burberry were also caught in the crossfire over their stance on Xinjiang cotton. These incidents highlight the delicate balance companies must navigate when addressing human rights concerns while maintaining a presence in the lucrative Chinese market.

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