Uniqlo Faces Backlash over Xinjiang Cotton Stance

Fast Retailing's stock experienced a significant decline following Tadashi Yanai's statement in a BBC interview that Uniqlo does not use cotton from China's Xinjiang region, a source of controversy due to allegations of forced labor involving the Uyghur minority. Yanai's comments have led to calls for a boycott in China, a critical market for Uniqlo, which has more stores there than in Japan. Despite the backlash, Yanai refrains from disclosing the origins of the cotton used by Uniqlo, stating that the topic is overly political. This situation reflects broader tensions as other brands like H&M and Nike have faced similar issues after halting the use of Xinjiang cotton, which resulted in boycotts in China. Yanai previously maintained a neutral stance between US and Chinese pressures, helping Uniqlo sustain its popularity in China's vast retail market. Nevertheless, the current controversy underscores the challenges global companies face in navigating geopolitical tensions between major economies.