UNIQLO’s “political neutrality” to avoid the Xinjiang issue was condemned by Japanese people and its stock plummeted.
After the human rights issue in Xinjiang became an international issue, Japanese companies were forced to make a choice. UNIQLO avoided the issue by being “politically neutral”, while MUJI continued to use Xinjiang cotton, and both companies were condemned by the Japanese public and their stocks plummeted.
Uniqlo’s “political neutrality”
At a press conference on April 8, Tadashi Yanai, president of Uniqlo, responded to a reporter’s question about how he viewed forced labor in Xinjiang by saying, “We are watching all the factories and cotton production, and will stop cooperating with each other once we find problems. You mentioned that the problem is more of a political issue than a human rights issue.” He added, “Human rights is a very important thing, and as a business we are doing what we can to ‘not comment’ on forced labor in Xinjiang, and we remain politically neutral.” The next day, April 9, the company’s shares fell sharply to close at 87,890 yen, down 3,090 yen from the previous trading day.
Japanese lawyer Akiko Sato said in the media, “It is logically absurd to say that you will not comment because it is a political issue. the fact that there is forced labor in Xinjiang has been reported and proven to some extent by the international community, but if you say ‘I am neutral, so I will not comment ‘, that means you accept the status quo of forced labor.”
A netizen named Masahiro Kondo said, “Not commenting” is the same as saying, “I am a bystander to bullying. This is a “political issue,” which is what the Chinese government has always said. In other words, UNIQLO is admitting that they have close ties with the Chinese government. If he had said, “The cotton used by Uniqlo was inspected on site and not obtained from Uyghurs in a non-forced labor environment.” Consumption is the only way to have peace of mind.
The netizen who signed Faye Kleeman wrote: Uniqlo and Mr. Yanai are just a typical businessman under capitalism. For companies to become global in the long run, ignoring human rights will not be bought by consumers, as is stated in the study of economics. Although young Japanese consumers still lack this knowledge, NIKE and Adidas are well aware of this, and in recent years to develop corporate momentum at the expense of China and other authoritarian regimes of the market, until now Japanese companies focus only on the Chinese market, lack of global vision. Disappointing.
MUJI continues to use Xinjiang cotton
In a press release on human rights violations in the Xinjiang Uyghur Autonomous Region on the 14th, MUJI stated that it would continue to use “Xinjiang cotton”. However, the president, Satoshi Matsuzaki, evaded the question several times when asked at a press conference on the same day.
According to the Nihon Keizai Shimbun, investors are concerned about Ryokan’s approach to human rights issues, and after Ryokan said on March 25 that it would continue to use cotton produced in the Xinjiang Uyghur Autonomous Region, its stock price fell 7% the next day compared to the previous day.
Netizen pokonyan left a message saying: If it stops using Xinjiang cotton, it will be shut out of the Chinese market, and if it uses Xinjiang cotton, it will be shut out of the international community and its image will be in tatters. Companies entering China may taste some sweetness for a while, but eventually will face the problem of entry and exit. This is one of the China risks, or what we might call the CCP risks. This is one that you should never approach, regardless of the treatment you are given.
The netizen who signed Ko wrote: MUJI, you’re kidding, you can’t be serious, right? I can’t believe it, I’m a big fan of yours, just went shopping the other day, people who talk about life and focus on the environment like MUJI. if not stop using Xinjiang cotton, I’ll stop buying your goods from now on. I don’t want to use the products of a business that is built on the suffering of others, and a company that doesn’t respect the lives of others is too disappointing.
Kagome stops using Xinjiang tomato ingredients
Japanese food major Kagome (Kagome) will stop using tomatoes from China’s Xinjiang Uyghur Autonomous Region in mid-2021. A spokesman said the decision was made based on a combination of quality and stable supply; on the other hand, it was also a factor in the decision, given that the international community has pointed out the human rights violations committed by the Chinese Communist Party against ethnic minorities.
Kagome (Kagome) only exports very few products to mainland China, with a small percentage of sales of 0.4% as of the end of 2020. kagome also has no production base in China, and only one sales base in Hong Kong.
The majority of the population is very much in favor of Kagome’s choice, with some calling for a trip to the supermarket to buy up all the Kagome tomato drinks.
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