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Wednesday, 28 June 2023 06:11

EU: Brands sued over alleged rights abuses

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European Uyghur Institute sues Inditex, Fast Retailing, and Skechers over alleged human rights abuses in China. Uyghur workers claim forced labor, including surveillance and camp involvement. Evidence, including a video of Uyghur workers making Skechers shoes, awaits verification. 

Brands face challenges navigating Xinjiang cotton controversy, fearing Chinese consumer backlash. Xinjiang produces a significant share of global cotton, but accusations of Uyghur detention in internment camps led to the Uyghur Forced Labor Prevention Act impacting imports to the US. 

Adidas, H&M, and Nike previously faced Chinese boycotts for criticizing Xinjiang cotton. Nike explores new strategies, like hyperlocal product launches, to mitigate sales impact. 

Despite trade discussions, Xinjiang cotton remains a sensitive issue for Western brands. Some, like Patagonia, relocate production to avoid involvement.