Course Themes:
Show how perception is more important than reality in politics.
The influence of political ideologies and ideas on contemporary affairs: how does nationalism influence human affairs?
Last month, huge retail brands such as H&M, Nike, Adidas, Burberry, and other Western brands have been receiving huge backlash across Chinese social media regarding cotton production in Xinjiang. Chinese media campaigns for the boycott of such brands all started with the global nonprofit organization Better Cotton Initiative (BCI) expressing concern and ceasing production in China’s Xinjiang Uyghur Autonomous Region due to accusations of “forced labor” there.
Xinjiang, China’s biggest region, produces about 1/5, 22% to be exact, of the world’s cotton. Uyghurs are a Muslim minority with millions home to Xinjiang. Allegations have been made that the Chinese government was torturing the Uyghurs in “detention camps” and using forced labor. However, the Xinjiang government spokesman Xu Guixiang has denied these claims, saying that the facilities were incorrectly labeled. They were re-education facilities aimed at lifting the Uyghur minority out of poverty and offering job training.
Many Western brands, who are members of BCI, issued statements expressing concerns and even cut ties with Xinjiang. Months later after their statements, Chinese netizens are furious at the “offensive” allegations and have launched boycotts and campaigns defending Xinjiang cotton. For example, CGTN shared a video establishing the reality of cotton-picking in Xinjiang, which involved automation and Uyghur farmers voicing that people are willing to cotton-pick by hand because it is a highly paid job. Chinese e-commerce companies, such as Taobao, took major international labels off their sites. Countless Chinese celebrities and influencers have condemned their foreign partners and ended their contracts due to the sensitivity of publicly asserting their nationalistic ideals. The Chinese Foreign Ministry denounced these allegations as “blind accusations” since there is no direct evidence of forced labor.
As the backlash grows vigorously, BCI has deleted its statement from its website. Similarly, several brands such as VF Corp., Inditex (which owns Zara), and PVH all quietly removed their statements that attempted to boycott Xinjiang cotton from their websites. International clothing brands seem to be fearful of offending Beijing since they rely on Chinese materials and factories. In fact, several companies announced that they will continue to support Xinjiang cotton. Other brands have responded that they don’t know exactly where and how every component of their clothes is made since the supply chain is especially complex and because they employed a business outside their company.
China has become an export “Colossal Titan.” As the world’s second-largest economy with a population of 1.398 billion people, the Chinese consumer class is massive and has strong purchasing power. According to a report released last year by Bain & Company, China is expected to be the world’s largest luxury market by 2025. In 2020, China was the only part of the world to report year-on-year growth, with the luxury market reaching 52.2 billion US dollars. Brands are heavily invested in selling their products to the Chinese. Standing on the opposite of Beijing results in the risk of losing their sales in the largest potential consumer market. However, brands are stuck in a dilemma as they have to achieve the right balance between Western and Chinese markets due to the political pressure from both sides.
Discussion Questions:
How does nationalism play a role in global affairs?
What would you do if you were a brand trying to operate in both the Western and Chinese markets?
How will hostility between the U.S. and China affect the economy?
Sources:
“Nike, H&M Face China Fury over Xinjiang Cotton 'Concerns'.” BBC News, BBC, 25 Mar. 2021, www.bbc.com/news/world-asia-china-56519411.
Friedman, Vanessa, and Elizabeth Paton. “What Is Going On With China, Cotton and All of These Clothing Brands?” The New York Times, The New York Times, 29 Mar. 2021, www.nytimes.com/2021/03/29/style/china-cotton-uyghur-hm-nike.html.
Goodman, Peter S., et al. “Global Brands Find It Hard to Untangle Themselves From Xinjiang Cotton.” The New York Times, The New York Times, 6 Apr. 2021, www.nytimes.com/2021/04/06/business/xinjiang-china-cotton-brands.html.
Suliman, Adela. “Nike, H&M, Burberry Face Backlash and Boycotts in China over Stance on Uyghur Treatment.” NBCNews.com, NBCUniversal News Group, 26 Mar. 2021, www.nbcnews.com/news/world/nike-h-m-face-backlash-china-over-xinjiang-cotton-concerns-n1262019.
If I were a brand trying to operate in both Western and Chinese markets, I would find it difficult to decide what to do. There are many Western markets that are profitable, but the same applies to the Chinese one. Both are valuable, and each have their own preferences. The people shopping at Western markets like buying products that assure them that they are not harming the market, compared to the Chinese ones, where the sheer quantity of people means that sales will almost always be made, as long as the product is useful or in demand. Both sides are necessary, and if continuing to support Xinjiang Cotton means that I can remain in the Chinese market, and there isn't too much backlash from the Western one, the choice would be obvious. If there was too much backlash from the Western market, like a full on boycott and demonstration, well, China's markets will have to be left for someone else.
ReplyDelete