Factory boss defiant as sanctions bite in China's Xinjiang

A backlash against reports of forced labor and other abuses toward a largely Muslim ethnic group in Xinjiang is taking a toll on China’s cotton industry, but it’s unclear if the pressure will compel the government or companies to change their ways

AKSU, China -- A backlash against reports of forced labor and other abuses of the largely Muslim Uyghur ethnic group in Xinjiang is taking a toll on China's cotton industry, but it's unclear if the pressure will compel the government or companies to change their ways. Li Qiang, general manager of the Huafu Fashion yarn factory in Xinjiang, told reporters that even though the company lost money in 2020 for the first time in its 27-year history, it bounced back by shifting to domestic orders. “This is now in the past,” Li said. “We’ve turned things around in the first quarter of this year.” Li blamed a sharp fall in foreign orders, as customers including Adidas and H&M cut ties, on “fake news" in a 2019 Wall Street Journal story that said brand name apparel makers and food companies were entangled in China’s campaign to forcibly assimilate its Muslim population. Huafu also cited U.S. sanctions and the coronavirus pandemic.