Global brands hide behind supply chain traceability gap to tackle the BCI call for cotton boycott

Ramesh Kumar From Greater Noida 

In the ongoing anti-China sentiments reverberating across most of the capitals in the world, supply chain traceability is playing a big role. The United States and it's West European allies have put several global brands in a tight spot in collective their fight against Xi Peng's China. 

Xinjiang cotton is at the center of controversy. Global fashion retailers such as Sweden's H&M, Burburry, Adidas, Nike, etc are feeling the pinch. These companies have been advised by their respective governments not to use cotton from the Xinjiang province in China. Why?

US and its allies have cottoned onto the theory that China uses forced labor in Xyghur where the minority Muslims are imprisoned and thus China is allegedly violating human rights. So, not to buy anything made from Xinjiang cotton. 

Here's the catch. Without exception, the global giants get their stuff made from various third-world countries that use Xinjiang cotton. However, it is difficult to trace the cotton origin given the multilayered supplier network. Supply chain visibility and traceability challenges. Even in good times, the biggest of multinationals seldom paid attention beyond tier 1 vendors. They never felt the need or compulsion to be ethical. 

History is replete with unethical business practices by the global giants.

The military and economy strong Beijing is not going to sit back tweedling its thumb. It told these global brands with a huge presence in the 1.4 billion populated and lucrative consumer market to lift the boycott of Xinjiang cotton or else face the music in the form of reverse social boycott. That is, these brands have to down the shutter in China if they don't withdraw their cotton 

China's state-controlled media and social media unleashed a massive campaign to boycott these global brands. A big dilemma for these giants because the domestic Chinese consumption is expected to double by 2030, says Morgan Stanley: 12.7 trillion American dollars, which is equal to what US consumers spend today. 

German's Hugo Boss claims that it is not using Xinjiang cotton but on the Weibo social media platform, taking another stance saying that it would continue to favor Xinjiang cotton because Xinjiang long cotton is one of the best in the world. Meanwhile, Chinese ecom platforms are removing these brands.

This development has led to Chinese brands such as Li-Ning and Anta gaining more footballs and media coverage. Celebrities began sporting Chinese brands.

The two sides pitted against one another are no babes. They are ready for a long-drawn battle. The moot question will be who will blink first. 

Significantly, the Better Cotton Initiative which said it was stopping all cotton procurement from Xinjiang on account of forced labor has removed its public statement from its website. This about turn, it claims, is based on the recent reports by its office in China and third parties. 

BCI was founded in Switzerland in 2009. It sets the global standard for cotton industries and certifies cotton farms globally. It boasts of 2100 members across the world including cotton farmers, textile businesses and retail brands. 

This reversal will enable 500,000 tonnes of Xinjiang cotton to enter the global supply chain of textile production. China supplies 24 per cent to the global demand and Xinjiang region alone contributes a whopping 87 per cent. 

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