The U.S., Canada, U.K. and European Union imposed sanctions on Chinese officials last week in connection with allegations of genocide and forced labor in the region. Beijing retaliated with similar steps against the Europeans.
According to a Reuters report, Chinese state media singled out H&M (ST:HMb) on Wednesday for a statement it made last year in which the Swedish retailer said it was deeply concerned by reports of accusations of forced labor in Xinjiang. The fast-fashion retailer said it did not source products from Xinjiang.
Nike made a similar statement distancing itself from cotton suppliers in the region last November, in particular denying claims made by an Australian think-tank that it sourced materials from firms that used forced labor.
A social media frenzy fueled by the government to stop foreign brands from tainting China’s name led to people searching for more statements on Xinjiang made in the past by foreign retailers, Reuters reported.
China’s government has reacted angrily to what it sees as interference in its internal affairs, imposing sanctions of its own on European lawmakers. The impasse threatens to stop ratification of a recent agreement between the EU and China on investment flows.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.