H&M stores shut in China after retailer focuses on Xinjiang human rights     

A man carrying an umbrellas walks past an H&M clothing store at a shopping mall in Beijing. (AP Photo/Mark Schiefelbein)

H&M stores in some parts of China are being closed by their landlords, threatening to disrupt the clothing giant’s growth in its fourth-biggest market as Beijing’s growing sensitivity toward criticism of the human rights situation in Xinjiang ensnares western companies.

Other western brands like Nike and Adidas have also drawn consumer ire for their pledges not to use Xinjiang cotton, but H&M appears to have suffered the brunt of the fallout after the statement was called out by the Communist Youth League and the People’s Liberation Army.

At least six stores in the lower-tier cities of Urumqi, Yinchuan, Changchun and Lianyungang have been shut down by the owners of the properties, according to the shopping centre operators in those areas. 

 Local media have reported more closures, with pictures showing H&M’s brand billboards being removed. 

The closures are the latest escalation in the backlash against an undated H&M statement on its website that expressed concern about reports of forced labour in the far west Xinjiang region, a major producer of cotton used in the global apparel supply chain. 

Some of the shopping centre operators said the decision to shutter was made by the landlords because of disrespect shown by H&M toward China. 

China’s response to H&M is markedly stronger than its previous pushback when foreign brands crossed political lines and the Swedish retailer is at risk of becoming a corporate casualty of Bejing’s heightened sensitivity. China accounted for around 5% of H&M’s total sales in 2020, the fourth-biggest country market after Germany, the US, and the UK.

 Bloomberg