HONG KONG (AP) – H&M disappeared from the Internet in China when the government increased pressure on shoe and clothing brands and announced sanctions on Friday against British officials in a spiraling fight over allegations of abuse in the region of Xinjiang.
H&M products were missing from major e-commerce platforms, including Alibaba and JD.com, following calls from state media to boycott the Swedish retailer’s decision to stop buying cotton in Xinjiang. This impairs H&M’s ability to reach customers in a country where more than one-fifth of purchases are online.
The shock waves spread to other brands, as dozens of celebrities canceled deals with Nike, Adidas, Burberry, Uniqlo and Lacoste after state media criticized the brands for expressing concern about Xinjiang.
Brands are struggling to respond to pressure abroad to distance themselves from abuses without provoking Chinese retaliation and losing access to one of the largest and fastest-growing markets. This pressure increases as human rights activists pressure sponsors to withdraw from the Winter Olympics scheduled for February 2022.
Tencent, which operates games and the popular messaging service WeChat, announced that it would remove the Burberry-designed suits from a popular mobile phone game.
In a high-tech version of the airbrush used by China and other authoritarian regimes to eliminate political enemies from historical photos, approximately 500 H&M stores in China did not appear on the Didi Chuxing app or maps operated by Alibaba and Baidu. Its smartphone app disappeared from app stores.
It was unclear whether the companies received orders to wipe out H&M’s online presence, but Chinese companies are expected to go online without being told. Regulators have broad powers to punish companies that do not support official policy.
The ruling Communist Party Youth League launched attacks on H&M on Wednesday following the European Union’s decision to join the United States, Britain and Canada in imposing sanctions on Chinese officials guilty of abuse in Xinjiang.
On Friday, the Chinese government announced sanctions against nine Britons and four institutions. They are prohibited from visiting China or making financial transactions with their citizens and institutions.
According to foreign governments and researchers, more than a million members of the Uyghur and other predominantly Muslim ethnic minorities have been confined to Xinjiang detention camps. Authorities are accused of imposing forced labor and coercive birth control measures.
The Chinese government rejects allegations of abuse and says the camps are intended for job training to support economic development and combat Islamic radicalism.
State media accused H&M and other brands of unduly benefiting from China while criticizing it. This caused Chinese retailers and Internet companies to distance themselves from the Swedish retailer, although there were still other brands available on e-commerce platforms.
“It’s a form of self-preservation,” said Shaun Rein, general manager of the China Market Research Group in Shanghai.
Rein said the outpouring of anger against H&M is the hardest he has seen against a foreign brand. He said companies are especially sensitive because this comes at a time when the Chinese antitrust and other regulators are stepping up scrutiny of Internet operators.
“If they don’t try to criticize, they’ll have problems too,” Rein said.
The Communist Party often pressures on clothing, travel, and other foreign brands for the actions of its governments or in an effort to force them to adopt their positions on Taiwan, Tibet, and other sensitive issues.
Most comply because China is one of the largest and fastest growing markets for fashion, electronics and other consumer brands.
China is the fourth largest H&M market behind Germany, the United States and Britain and accounted for approximately 5% of 2020 revenue.
Greater China is the third market of Nike Inc. after North America and Europe.
Greater China accounted for 23% of Nike’s global sales in the quarter ending February, compared to 36.5% in North America. But China’s revenue rose 51 percent a year earlier as consumer demand recovered the coronavirus, while U.S. sales fell 10 percent.
An H&M establishment in Shanghai only had a handful of customers on Friday afternoons.
“I was not aware of the reaction. I came to buy a coat for spring because H&M is reasonably priced and fashionable, ”said Wang Yuying, a 52-year-old retiree who went shopping at the store.
“I’ll keep buying something since I’m already here, but if that reaction lasts a long time, I’ll buy less from that brand.”
One seller, who asked not to be identified by his name due to the sensitivity of the matter, said there were far fewer buyers than a normal Friday. The seller said he understood why consumers were angry, but said that if the reaction continues, it will harm the livelihoods of local employees of the target brands.
Two character costumes designed by Burberry were removed from Tencent’s popular Honor of Kings mobile game, the game’s social media account said Thursday. He gave no reason.
Celebrities, including at least one Uighur, announced that they were ending accession agreements with foreign footwear and clothing brands.
Gulnazar, a Xinjiang actress, said she was breaking ties with Puma. On his social media account, Gulnazar said he “resolutely resists all attempts to discredit China.”
Hong Kong singers Eason Chan and Angelababy announced they would break ties with Adidas. Actress Zhou Dongyu broke up with Burberry. Actors Ni Ni and Jing Boran broke with Uniqlo.
Song Qian, singer and former member of the Korean pop group f (x), also known as Victoria Song, and actor Huang Xuan, previously announced that they would end support agreements with H&M.
In Hong Kong, pro-Beijing lawmaker Regina Ip said in a Twitter post that she would stop buying Burberry, one of her favorite brands.
“I am in my country boycotting companies that spread lies about Xinjiang,” he said.
Not all brands have shied away from Xinjiang’s supply.
South Korean sports shoe brand FILA said Friday that the company buys cotton in Xinjiang and will continue to do so.
In its social media account, FILA China said it has begun the process of withdrawing from the Better Cotton Initiative, an industry group that promotes environmental and labor standards.
H&M’s announcement last year that it would stop using cotton Xinjiang cited BCI’s decision to stop licensing cotton in the region because it was difficult to trace how it was produced.
It was not clear why the party turned to H&M, the expression of its concern for Xinjiang was similar to that of other companies. But Chinese leaders might find their home country, Sweden, more susceptible to pressure because of its small size.
Relations between Beijing and Stockholm have been strained since 2015, when a Chinese-origin Swedish publishing house disappeared from Thailand and appeared in China. The Chinese ambassador angered the Swedish government by referring to this in a television interview as a “light boxer”.
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McDonald reported from Beijing. Associated Press researchers Yu Bing in Beijing and Chen Si in Shanghai collaborated.