Japan's Muji Sides with China... Publicly Supports "Use of Xinjiang Cotton"

Xinjiang Region Facing Uyghur Forced Labor Controversy
WSJ "Muji's Half of Global Sales Come from China"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Japanese household goods brand MUJI has publicly disclosed that it uses cotton from Xinjiang, China, where forced labor controversies have arisen.

The Wall Street Journal (WSJ) reported on the 11th (local time) that MUJI is actively promoting the use of Xinjiang cotton by labeling some products in its online stores in China with the phrase 'Xinjiang cotton.'

MUJI stated last month that when they investigated local cotton farms in Xinjiang last year, they did not find any substantial human rights violations, and they believe that using Xinjiang cotton could actually help improve the lives of Uyghur residents.

This response is completely different from that of the U.S. government and Western human rights organizations, which have raised concerns about forced labor of Uyghurs in Xinjiang and led companies to declare policies not to use Xinjiang cotton in their products.

In particular, companies such as Nike and H&M, which have declared opposition to the use of Xinjiang cotton, have become targets of strong boycott campaigns in China.

WSJ evaluated MUJI's open siding with the Chinese government as an unusual response compared to Western companies as well as other Japanese companies.

It added that MUJI's actions show another way companies respond when facing difficult situations while doing business in China.

MUJI is known to generate about half of its overseas sales from China. This is interpreted as choosing not to offend the Chinese government in order to avoid giving up sales in China.

Additionally, MUJI executives have said that after their U.S. business unit filed for bankruptcy protection last year, they see China as a growth engine, and MUJI expects to have more than 300 stores in China by August.