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The United States and the United Nations have accused China of mainly suppressing the Uighur Muslim population.
Who Bloomberg
Published December 31, 2021
China has issued a stern warning to Walmart Inc. after it complained that the country’s company had stopped selling products in Xinjiang, increasing pressure on the retail giant amid tensions with the U.S. in the western province.
The Central Commission for Discipline Inspection, the Chinese Communist Party’s anti-graft caregiver, dismissed suggestions that the management of the inventory was behind the change in the chain, which is only for members of Walmart. Consumers will respond with “practical action” if the company does not “respect the feelings of the Chinese,” the commission said Friday.
The warning highlights how Walmart and U.S. businesses are being caught in the geopolitical tensions over Xinjiang, where the U.S. and the United Nations have accused China of suppressing the Uighur Muslim population. U.S. President Joe Biden signed on Dec. 23 to ban companies that sell goods made with provincial ingredients to the U.S. unless they prove there was no forced labor.
“The removal of all products in a region for no valid reason hides a hidden intent, reveals stupidity and myopia, and is likely to have adverse consequences,” the Central Discipline Inspection Commission said in a statement on its website.
Chinese social media platforms criticized Sam’s Club last week for accusing customers of removing products from Xinjiang.
Walmart did not immediately respond to a request for comment on China’s statement, as reported earlier by Reuters.
Human rights
Xinjiang has become a sensitive issue for foreign multinationals. Hennes & Mauritz and Nike Inc. They have boycotted brands like Xinjiang for not using cotton, and Swedish retailers have removed it from local e-commerce platforms for their stance. Intel Corp. apologized to Chinese customers last week for asking suppliers not to use Xinjiang crafts or products to ensure compliance with U.S. law.
Chinese officials deny the use of forced labor in Xinjiang and call on U.S. law to intervene in the nation’s internal affairs.
Walmart faces a highly competitive supermarket industry in China, with the exception of its largest foreign market in Mexico. Although the Arkansas-based company in Bentonville was a pioneer in the hypermarket format in China, pressure is growing from local rivals such as e-commerce giant Alibaba Group Holding Ltd.
At the same time, Sam’s Club has been a clear spot for Walmart in the country, where the chain sells its most imported products as a top food destination. Walmart expects to have 100 Sam’s Club stores in China by 2028, roughly tripling the number from its current level.
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