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Xinjiang Official Warns Foreign Firms May Face Consumer Boycotts

Xinjiang Official Warns Foreign Firms May Face Consumer Boycotts

A Xinjiang official warned that foreign companies could face boycotts from Chinese consumers, in one of the most direct signals yet that Beijing is willing to use its market power to counter a U.S.-led human rights campaign. 

Foreign companies removing Chinese products while profiting from the nation’s market will inevitably face resistance from consumers, Xinjiang government spokesman Xu Guixiang told a news briefing Thursday, according to state broadcaster China Central Television. The remarks come weeks after U.S. President Joe Biden signed a law barring companies from selling goods from the western Chinese region over allegations of forced labor involving its predominately Muslim Uyghur minority. 

“We advise these companies not to underestimate the patriotic enthusiasm of Chinese consumers, the ability of Chinese consumers to safeguard their legitimate rights and interests, and the consequences of sneaky political manipulation,” Xu said. “I advise these companies to consider their own interests,” he added, pointing out that Hennes & Mauritz and Intel Corp. both eventually had to “bow to Chinese consumers.”

The warning underscores how U.S. businesses are becoming ensnared in geopolitical tensions over Xinjiang, where China has been accused by the U.S. and others of waging a campaign to suppress the Uyghur population. Beijing officials have consistently denied that forced labor is used in Xinjiang, saying that the U.S. claims are aimed at suppressing China’s development. 

The bill Biden signed on Dec. 23 bans companies from selling goods in the U.S. that were made with components from the region -- unless they can prove forced labor wasn’t involved. Some U.S. lawmakers have also voiced concern that uniforms worn by participants in the Beijing Winter Games may be made with forced labor.

Xu’s comments come in response to allegations that Walmart Inc. had stopped selling Xinjiang items at its members-only Sam’s Club chain in China. A representative for Sam’s Club told analysts that the issue was a “misunderstanding” and that Chinese customers didn’t find Xinjiang items on its app because the platform didn’t support searches based on place names, Reuters reported earlier. 

©2022 Bloomberg L.P.

With assistance from Bloomberg