With Congress passing legislation banning virtually all imports from Xinjiang amid human-rights and forced-labor issues, Walmart Inc. has come under fire on Chinese social media for discontinuing sale of items produced in the region, according to published reports.
President Biden signed the Uyghur Forced Labor Prevention Act into law earlier in December, and according to the Wall Street Journal, Walmart is the latest Western company to feel the heat from Chinese consumers over its handling of business linked to producers in Xinjiang. The company has a 25-year history in China, according to its website.
“Walmart has been at the forefront of retail modernization in China since 1996, when we opened a hypermarket and Sam’s Club in Shenzhen,” Walmart states on its website. “We now serve communities nationwide as a leader in omnichannel retail.”
However, Chinese consumers have complained that the global retailer has stopped stocking items produced in Xinjiang to abide by the new U.S. law, WSJ reports. China has dismissed allegations against it of genocide and forced labor, claiming their policies in the Xinjiang region are geared at national security and anti-terrorism. Despite China’s claims, Secretary of State Anthony J. Blinken wrote that addressing China's use of forced labor is a priority for the Biden administration.
“We will continue doing everything we can to restore the dignity of those who yearn to be free from forced labor,” Blinken said in a statement on the state department website. “We call on the Government of the People’s Republic of China to immediately end genocide and crimes against humanity against the predominantly Muslim Uyghurs and members of other ethnic and religious minority groups in Xinjiang.”
H.R.1155, the Uyghur Forced Labor Prevention Act, prohibits the import of products produced in the Xinjiang region unless U.S. companies certify no forced labor was used to produce the product. Blinken noted in the statement that these measures help promote accountability in the region.
“This new law gives the US government new tools to prevent goods made with forced labor in Xinjiang from entering U.S. markets and to further promote accountability for persons and entities responsible for these abuses,” Blinken said in the Dec. 23 statement.
According to the Wall Street Journal report, the region is home to millions of Muslims, who are a minority in China. The publication also noted that some of the goods included in the ban include items grown in the region, including red dates and melons.
Walmart has quite a bit at stake in China. According to its website, it has nearly 387 Walmart stores and 36 Sam’s Club outlets in the country. Bloomberg reported that the company hopes to have 100 Sam’s Club stores operating in China by 2028.
China also is proving to be big business for Walmart, with sales from China totaling $10.7 billion in 2019, and $10.6 billion in 2020, according to data from Statista. Sales are expected to top $11.4 billion in 2021, Statista reports.