German company Adidas said Monday that profits plummeted in China after consumers boycotted the company since taking a stand in March against the human rights abuses in Xinjiang.
Adidas reports a 15% drop in revenue in the third quarter in profits from Mainland China, the country of Taiwan and the city-state of Hong Kong. There was also a 16% drop in the second quarter, according to the Wall Street Journal.
Reuters reported that the current 5% drop in share prices is due to supply chain issues and factory closures in Vietnam losing $1.2 billion in sales.
Several companies remain loyal to the Chinese market. H&M took a stand and pulled out of Xinjiang in 2020 over concerns of forced labor of the Uyghur Muslim minority. Adidas and Nike are both part of the Better Cotton Initiative, a cotton sustainability program working to produce ethical cotton, the WSJ reported.
The Senate successfully passed the Uyghur Forced Labor Prevention Act in July, which moves to ensure that American interests are not funding human rights abuses in China by assuming goods manufactured in Xinjiang are made with forced labor and therefore banned, Reuters reported.
Several companies, including Coca-Cola and Nike, fought to change the language in the act, arguing that it would weaken the supply chain.
“Nike is committed to ethical and responsible manufacturing and we uphold international labor standards. We are concerned about reports of forced labor in, and connected to, the Xinjiang Uyghur Autonomous Region (XUAR). Nike does not s… (Read more)