China encourages boycott of Nike and Adidas and shares fall – Global

Tonight on Wall Street, two stocks of the world’s largest and best-known sports corporations are running at the center: Nike (NYSE: NKE) and Adidas (NYSE: ADDYY), which are down 3% and 6%, respectively. The reason? China. The two companies, which are known to produce quite a few goods in China, are now in danger of a boycott in China along with several other Western clothing companies, including the clothing giant H&M, due to the companies’ public stance against China for allegedly using cotton workers in the western Chinese province. Xinjiang, where the oppressed Muslim Uighur minority is located, according to foreign news sites.

Western corporations have been aware of and opposing forced labor in China for some time, but now there is a media crisis centered on Chinese social media and full encouragement by the Chinese government to boycott Western companies, following a statement by senior Western officials such as the US, Canada, Britain and the EU. They condemn China’s alleged violations of civil rights and labor camps set up in Xinjiang province, and sanctions have been imposed on Chinese government officials on its territory.

According to the Motley Pool website, investors are rightly pressured. As we know, words have power and the Internet has much more power and the public debate on the Chinese boycott with the support of the government convinced Alibaba to remove all H & M products sold on the Tmall shopping platform. The risk of Nike being next in line cannot be ignored. When you put into the equation the fact that 18% of Nike’s annual sales come from China (according to S&P Global Market Intelligence), the situation will be much worse before it gets better.

Now, Chinese media and the social network in particular are encouraging Chinese customers to boycott Nike As well as other foreign companies that have previously condemned the forced labor. This is not the first time that Nike, Adidas and H&M are getting involved with China. The three have previously officially announced that they do not purchase in any way and their products have no connection to Xinjiang Province Industries and are part of the Better Cotton trade initiative which was described by Reuters as “sustainable cotton production” and refrained from purchasing cotton from this province due to human rights violations Consumers across China have posted “If you boycott cotton from Xinjiang Province, we snore at you.” The Young Communist League accused Nike and other Western companies of “making money in China while spreading false rumors and boycotting the cotton industry” and an office. The Chinese Foreign Ministry has accused the companies of “spreading lies with malicious intent to harm the Chinese economy”