Nike and H&M risk boycotts over Chinese forced labour furore

Controversy stems from the issue of whether North American and European companies will continue to buy cotton from the Xinjiang region amid allegations of forced labour

Nike and H&M are under pressure and facing a dilemma in China.

Nike investors are sweating over concerns its fast-growing Chinese retail business could falter amid calls to boycott related to the company’s position on cotton from the contentious Xinjiang region.

The sportswear firm’s shares fell as much as 5.4%, the most intraday since October. Other companies caught up in the controversy, including fashion retailers H&M and Burberry, also fell.