MUJI supports Xinjiang cotton, shares sold by Japanese investors.
Taiwan‘s “Free Finance” reported on March 26, citing the Nikkei newspaper, many foreign brands, including H&M, Nike, UNIQLO, GAP have stated that they will not use Xinjiang cotton, for these businesses, Chinese Internet users launched a boycott, a user signed “red store owner” on microblogging, and also put out the slogan “boycott these products, withdraw from China.
As of noon Thursday (March 25), the “I support Xinjiang cotton” hashtag of the Communist Party’s People’s Daily had been viewed 85 million times on Weibo.
Unlike foreign businesses that do not use Xinjiang cotton, Japan’s MUJI has launched a line of clothing called “Xinjiang Cotton” in the “New Products” section of its Chinese website.
The Nikkei reports that it is unclear whether MUJI is using Xinjiang cotton for clothes sold in Japan and other countries, and the company has not responded to Nikkei’s questions about it.
A spokeswoman for MUJI responded to Nikkei, saying that in addition to its regular monitoring practices for its direct suppliers, parent company Ryohin Keikaku has conducted due diligence on Xinjiang companies indirectly involved in the supply chain.
The spokesperson stressed that information will continue to be gathered carefully and appropriate measures such as due diligence will be taken to prevent human rights violations in the supply chain. If there are any improper practices, their suppliers will be immediately asked to make corrections, and if improvements are unlikely, termination of the contract will be considered.
In response to MUJI’s approach, Japanese investors are making a statement by selling their shares.
On Friday, MUJI’s parent company Ryohin Keikaku showed a killing pattern as soon as it opened in Tokyo, with its shares once falling to 2,494 yen, down more than 7%, and still closing down 3.25%, evaporating 22.9 billion yen in market value in one day.
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