HONG KONG (AP) – H&M has disappeared from the internet in China as the government has put pressure on footwear and clothing brands and announced sanctions on Friday against British officials in a spiraling battle over allegations of abuse in the Xinjiang region.
H&M products were missing from major e-commerce platforms, including Alibaba and JD.com, following state media calls to boycott the Swedish retailer’s decision to stop buying cotton in Xinjiang. This affects 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 approval agreements with Nike, Adidas, Burberry, Uniqlo and Lacoste after the state press criticized the brands for expressing concern about Xinjiang.
Brands are struggling to respond to pressure from abroad to distance themselves from abuse without triggering Chinese retaliation and losing access to one of the largest and fastest-growing markets. This pressure is growing as human rights activists put pressure on sponsors to exit the Beijing Winter Olympics, scheduled for February 2022.
Tencent, which operates games and the popular WeChat messaging service, has announced that it will remove the Burberry-designed suits from a popular mobile game.
In a high-tech version of the airbrush used by China and other authoritarian regimes to wipe out political enemies from historical photographs, about 500 H&M stores in China did not appear in the Didi Chuxing app or in the map services operated by Alibaba and Baidu. Its smartphone app has disappeared from app stores.
It was unclear whether the companies had received orders to remove H&M’s online presence, but Chinese companies are expected to line up 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 by imposing sanctions on Chinese officials blamed for abuses in Xinjiang.
On Friday, the Chinese government announced sanctions against nine Britons and four institutions. They are prohibited from visiting China or conducting financial transactions with its citizens and institutions.
More than 1 million members of Uighur and other predominantly Muslim ethnic minorities have been detained in Xinjiang detention camps, according to foreign governments and researchers. Authorities there 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 vocational training to support economic development and combat Islamic radicalism.
The state media accused H&M and other brands of taking inappropriate advantage of China, criticizing it. This has led Chinese retailers and internet companies to distance themselves from the Swedish retailer, although other brands were still available on e-commerce platforms.
“It’s a form of self-preservation,” said Shaun Rein, general manager of China Market Research Group in Shanghai.
Rein said the outpouring of anger at H&M is the hardest he has seen against a foreign brand. He said companies are particularly sensitive, as this comes at a time when the Chinese antitrust and other regulators are stepping up control of internet operators.
“If they don’t try to criticize, they will have problems too,” Rein said.
The Communist Party often presses on foreign clothing, travel and other brands in connection with the actions of their governments or in an effort to force them to adopt its positions on Taiwan, Tibet and other sensitive issues.
Most are compliant because China is one of the fastest growing markets for global fashion, electronics and other consumer brands.
China is the fourth largest H&M market behind Germany, the United States and the United Kingdom and accounted for about 5% of 2020 revenue.
China Greater is the third largest market of Nike Inc. after North America and Europe.
Greater China accounted for 23% of Nike’s global sales in the quarter ended February, compared to 36.5% for North America. But China’s revenue rose 51 percent from a year earlier as consumer demand rebounded from coronavirus, while sales in North America fell 10 percent.
A H&M outlet in Shanghai had only a handful of customers on Friday afternoon.
“I was not aware of the adverse reaction. I came here to buy a coat for spring, because H&M is reasonably priced and fashionable, ”said Wang Yuying, a 52-year-old retiree who was shopping at the store.
“I will still buy something because I am already here, but if this reaction lasts a long time, I will buy less from this brand.”
One seller, who asked not to be identified by name due to the sensitivity of the issue, said there were far fewer buyers than on a typical Friday. The seller said he understood why consumers are angry, but said that if the reaction continues, it will affect the livelihoods of local employees of the targeted brands.
Two outfits of characters designed by Burberry in the popular mobile game in honor of the kings of Tencent have been eliminated, the social media account of the game declared on Thursday. He gave no reason.
Celebrities, including at least one Uighur, have announced that they are concluding approval agreements with foreign brands of footwear and clothing.
Gulnazar, an actress from Xinjiang, said she is breaking ties with Puma. On his social media account, Gulnazar said he “resolutely resists all attempts to discredit China.”
Singers Eason Chan and Angelababy from Hong Kong have announced that they are breaking ties with Adidas. Actress Zhou Dongyu broke up with Burberry. Actors Ni Ni and Jing Boran broke up with Uniqlo.
Song Qian, singer and former member of the Korean pop group f (x), also known as Victoria Song, and actor Huang Xuan announced earlier that they will enter into support agreements with H&M.
In Hong Kong, pro-Beijing lawmaker Queen Ip said in a Twitter post that she would stop buying Burberry, one of her favorite brands.
“I am with my country in boycotting companies that spread lies about Xinjiang,” she said.
Not all brands have avoided supply from Xinjiang.
South Korean sports shoe brand FILA said Friday that the company is buying cotton from Xinjiang and will continue to do so.
On 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.
Last year’s H&M announcement that it would no longer use Xinjiang cotton mentioned BCI’s move to stop licensing cotton in the region, as it was difficult to track how it was produced.
It was unclear why the party targeted H&M, whose concern about Xinjiang was similar to that of other companies. But his home country, Sweden, could be seen by Chinese leaders as more susceptible to pressure because of its small size.
Relations between Beijing and Stockholm have been strained since 2015, when a Swedish publisher of Chinese origin disappeared from Thailand and appeared in China. The Chinese ambassador angered the Swedish government by referring to him in a TV interview as a “light boxer”.
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McDonald’s reported from Beijing. Associated Press researchers Yu Bing from Beijing and Chen Si from Shanghai contributed.