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Showing posts with label losers in Xinjiang cotton row. Show all posts
Showing posts with label losers in Xinjiang cotton row. Show all posts

Monday 5 April 2021

Winners, losers in Xinjiang cotton row

Not many will gain in the current furore over Xinjiang cotton, but the West may end up losing more.

As the soil and climate is ideal for cotton farming, Xinjiang produces one of the best quality cotton crops in the world. 


 


XINJIANG has never left the radar of the United States and its allies in their relentless efforts in recent years to vilify Beijing. They have hurled accusations ranging from human rights violations to baseless claim of “genocide” against the Muslim minority groups.

The most recent blow, which has kicked up a huge international firestorm since March 24, centered on the alleged use of “forced labour” in the huge and vibrant cotton industry in Xinjiang.

Calling these accusations “malicious lies and fabrications”, Beijing has imposed tit-for-tat sanctions on politicians and groups in the US, Britain and the European Union (EU), in retaliation for Western sanctions on Chinese officials over their role in alleged human right violations in Xinjiang.

In its attempt to show the brain and culprits behind these allegations, Beijing has also said there are geopolitical and economic reasons in the conspiracy to “blacken” Xinjiang cotton.

Accusing the US of aiming to destabilise China, Beijing’s foreign ministry on March 26 showed the media a 2018 video that recorded a speech by career US army officer Lawrence Wilkerson, who told the US Central Intelligence Agency to use Uyghurs in Xinjiang to hit China from within.

Beijing has also highlighted the subtle link between US government and Geneva-based NGO Better Cotton Initiative (BCI), which has sanctioned Xinjiang cotton despite being informed by its Shanghai branch there are no signs of forced labour in Xinjiang in the latter’s own investigation.

The BCI, hitherto thought to be an independent trade group to promote better standards, is accused by China to have allegedly taken funding from US Agency for International Development (USAID).

According to USAID’s website, the work of the agency “advances the government’s national security and economic interest”.

The Chinese social media has taken this further. It points out that BCI council chairman Marc Lewkowitz is the president of Supima – the promotion and marketing organisation for American Pima cotton growers.

“The US has no right to accuse China over human rights. It’s time for some US politicians to end the drama they made up, directed and performed themselves, and it’s time for them to wake up from their own Truman Show, ” said Hua Chunying, China’s key foreign ministry spokesperson, at a regular press briefing last Wednesday.

As the history of Xinjiang is marred with bloody terrorism and separatism, which was only put to an end by the central government in 2016, the province populated with 12 million Muslim Uyghurs has become an easy target for anti-China groups to fan up religious and anti-China sentiment.

However, amid allegations against China, leaders from the Muslim world who have visited Xinjiang have not uttered disapproval. In fact, some Middle East nations even voiced support for Beijing’s treatment of the Uyghurs.

A 25-year strategic cooperation agreement signed on March 27 between China and Iran is seen as a stamp of confidence on China by a major Muslim country. The pact, signed at the height of the cotton conflict, covers military, trade, energy and economic cooperation. It has attracted Western media and eyes.

In countering the claim that Xinjiang cotton is tarnished by forced labour, China has questioned why its accusers have persistently refused to visit Xinjiang and do their own fact-finding.

In the past, Beijing has adopted a relatively passive response towards western accusations. Its rebuttals often came in the form of press statements and media interviews to show the good work they have done in Xinjiang, which include eradicating extreme poverty in this arid mountainous north-western province, setting up schools for the young, and creating employment for the jobless.

But this time around, China has dropped its soft approach. It has hit back mercilessly.

For politicians with wide-ranging commercial interest in China, it really hurts. One named person facing China’s sanctions saw his family fortune dwindle by US$1bil as businesses linked to him are hit, according to social media posts.

It is understandable that Beijing has to respond fast as these claims are hurting Xinjiang and undermining China’s economy. It has triggered boycott of Xinjiang cotton by Western brands led by H&M, Nike and Adidas – all members of the BCI.

According to China Daily, the boycott has had an instant impact on Xinjiang’s cotton/textile industry. Textile factories are planning to lay off workers and cutting purchase from local farmers due to cancelled orders.

The cotton/textile industry in Xinjiang has created jobs for 600,000 local people. More than 50% of farmers in Xinjiang grow cotton, with over 70% of these farmers coming from ethnic minority groups – the Uyghurs, Kazaks and Uzbeks, says the daily.

The boycott has had an instant impact on Xinjiang’s cotton/textile industry.

The boycott has had an instant impact on Xinjiang’s cotton/textile industry.

According to commentators on China’s official CCTV television (Channel 4) last Sunday, cotton farming was introduced to help eradicate abject poverty. As the soil and climate is ideal for cotton farming, Xinjiang produces one of the best cotton crops (in terms of quality) in the world.

With an annual output of 5.2 million tonnes, Xinjiang’s cottonco accounts for 87% of China’s output and 23% of world supplies. By end-2019, there were 808 cotton processing plants in Xinjiang, accounting for 84% of China’s total, says a report in Global Times.

These statistics show that cotton farming and textile manufacturing has become a mainstay of Xinjiang’s economy, apart from tourism.

If Xinjiang’s cotton is tarnished, this segment of Chinese economy will be affected. More so will be China’s efforts in poverty eradication, hailed by the World Bank as a great achievement.

Hence, it is no surprise China has had to roar back to stop further damage.

Arguing against the “forced labour” claim, the Global Times noted that over 90% of cotton fields in the northern part of Xinjiang is mechanised.

And interestingly, the cotton-picking machines of Xinjiang are imported from the US. John Deere of the US has sold US$500mil worth of cotton-harvesting equipment to Xinjiang since 2017, according to the South China Morning Post.

But the loss in this row is not just confined to China. Western brands that have dropped Xinjiang cotton are feeling backlash from the mainland’s consumers, who have called for a nationwide boycott by China’s 1.4 billion people.

Sweden’s garment company H&M, reported to have 505 sales outlets in China, saw its stores empty on March 25, shunned by local customers. It was reported that six stores have closed after landlords cancelled their leasing contracts.

As China is a major market for H&M in terms of revenue, H&M last Wednesday posted a statement on its website to defuse tension. It said without mentioning Xinjing: “We are dedicated to regaining the trust and confidence of our customers, colleagues, and business partners in China.”

 Shuttered shops: Sweden's garment company H&M, reported to have 505 sales outlets in China, saw its stores empty recently due to backlash from irate locals - Reuters

But Chinese netizens are not happy with this statement.

The Chinese sentiment is largely reflected by a post by China’s Communist Youth League: “Spreading rumours to boycott Xinjiang cotton, while trying to make a profit in China? Wishful thinking!”

The foreign ministry’s Hua Chunying stated similar stance: “Chinese people will not allow foreigners to eat our rice and break Chinese bowl”.

More than 40 celebrities in the entertainment world have responded to call for boycott by quitting as brand ambassadors for foreign companies.

It was not a surprise when share price of some multinational companies plunged after the public outcry in China.

According to media reports, Germany’s Adidas saw its share price plunge by over 6% on March 25. Adidas and US-based Nike saw their combined market value dissipate by more than 70 billion yuan or US$10.7bil. The market value of H&M slumped by about 4.8bil yuan.

But if these multi-national corporations (MNC) want to continue to operate in China and earn billions from 400 million middle-class consumers, they may have to do soul-searching and research.

Zhang Yi, CEO of Shenzhen-based iiMedia Research, told Global Times these MNCs may find prospects and growth potential in the rapidly-expanding Chinese market dimmed, and their brand value could be reduced by half.

Before this cotton episode, many MNCs had rosy growth projections for 2021 in the Chinese market. For instance, Adidas was expecting 20%-30% growth in China in 2021, Zhang noted.

Apart from growth, MNCs could also face an irreversible loss in the world’s largest market. When an MNC loses its market share in China, another will promptly scramble in to fill the vaccum, according to Zhang.

According to media reports, Germany’s Adidas saw its share price plunge by over 6% on March 25.

 According to media reports, Germany’s Adidas saw its share price plunge by over 6% on March 25.

However, not all MNCs are losers. Companies that have aired support for Xinjiang, such as Fila China and Muji China, are enjoying consumer support.

And California-based Skechers has won generous praise for having done its own fact-checking. The footwear firm has said its audits found no evidence its Chinese supplier had used “forced labour”.

Some Chinese brands have also emerged winners in this conflict as consumers turn nationalistic. These include Li Ning and Anta.

Globally, the losers are consumers.

Yang Shu, associate professor of China Agricultural University, said this cotton row would disrupt supply chain and push up costs.

Hence, consumers in EU, the US and Southeast Asia will have to pay more for products with Xinjiang cotton.

For China, this cotton row may be a wake-up call to review its international strategies.

Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation, told Global Times Beijing might have to exert “a far greater say in the global cotton/textile industry and in the formulation of standards and pricing”.

And rightly so, as China is the world’s second biggest cotton producer and largest textile/apparel exporter. Last year, it sold US$291.22bil worth of cotton-linked products to the world.

As US President Joe Biden has declared he will not allow China to overtake the US during his term of office, China can expect to see more blows from the US to contain China and counter President Xi Jinping’s successful Belt and Road Initiative.

But as the Alaska talk last month shows, Beijing is prepared to stand up to the US and the West. It has declared it will not allow China to be bullied and humiliated by the West like 120 years ago.

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Smear campaign serving

The US has found the world order quickly shifting and is feeling uneasy with the challenge from China. 

. . . . Anger brews in China over brands boycotting Xinjiang cotton, linking it to claims of forced labour....

Smear campaign serving

The US has found the world order quickly shifting and is feeling uneasy with the challenge from China.

Beautiful diversity: Today, there are 25 million Muslims living in China. Here, Muslim devotees are praying at the Nanxiapo Mosque in Beijing to celebrate Hari Raya Aidilfitri. — The Star



 
 THE legend of Admiral Zheng He (more commonly known as Cheng Ho to most Malaysians) has always fascinated me, being a history student with Peranakan roots in Penang.


In fact, I took the opportunity to travel to Nanjing, China, to pay respects to the great man at his tombstone.

The only snag was, Zheng He’s resting place remains a mystery, he who led historic voyages to South-East Asia and eastern Africa.

His remains have never been found, leading many to believe he received his final rites at sea during his last voyage, sometime in 1433.

But Zheng He is not a Uighur (pronounced as wee ger). He was from the Hui ethnic group, which comprises Muslims.

The history of Islam in China goes back more than a staggering 1,300 years.

While Zheng He is probably one of the most famous Muslims, there were others during the Ming rule, Muslim military generals including Mu Ying, Hu Dahai, Lan Yu, Feng Sheng and Ding Dexing.

There was also the famous Confucian Muslim scholar, Ma Zhu, who served during the Ming dynasty. The name Ma is the Chinese counterpart to Muhammad.

Today, there are 25 million Muslims living in China. The Hui is the largest group (48%), followed by the Uighur (41%), and together, they make up about 90% of the total Muslim population. The other Muslims include Kazakh (6,1%) and Dongxiang (2.5%), followed by the Kyrgyz, Uzbek, Salar, Tajik, Bonan and Tatar groups. They live mostly in Xinjiang, Gansu, Qinghai and Yunnan, and even in Beijing and Xian.

My trips to China have taken me to Xinjiang by air, road and train, where I spent weeks meeting these beautiful ethnic minorities.

I travelled on the Silk Road and tried imagining how ancient traders treaded the same path. Famed Italian merchant, Marco Polo, probably used the same route in the 13th Century to look for spices, silk and carpets.

My journey took me across the Taklamakan desert on long overnight trains to Turpan (or the Flaming Mountains), the setting of the famous Chinese novel Journey to the West, of the Monkey God fame.

The trip concluded in Urumqi, the capital of Xinjiang Uyghur Autonomous Region in the far northwest of China.

Urumqi was a major hub on the Silk Road during the Tang Dynasty’s golden age, and today, it has one of the world’s largest bazaars.

Walking through the markets reminded me of the souq in the Middle East, being surrounded by the blue-eyed Uighur and their distinct Turkish looks, while blonde Russians, all speaking Mandarin, were among the other Chinese. It was an exotic place, indeed.

As a “banana” (a term describing a Western-educated Chinese with Western world views, and can’t speak Mandarin), I was lucky to have scholars from Universiti Malaya explain the historical and academic aspects of China.

I have also travelled to Xian, where China’s ancient capital, Chang’an, is located. It was home to more than 10 dynasties.

It was a delight for me to step into the mosques and immerse in local Muslim culture. Islam has long been part of Xian history, where the terracotta soldiers stand guard.

But today, Xinjiang is in the international news for all the wrong reasons. Damaging words, including genocide, have been hurled at it. The grim and gruesome word means killing many people from an ethnic group with the aim of wiping it out.

There is little evidence, if none at all, to prove genocide, but it’s such a strong emotive word that it recalls the Holocaust and Khmer Rouge killing fields in Cambodia.

The Xinjiang cotton fields are alleged to have practised forced labour, even though it’s common knowledge that machines are required for large scale productions. There have also been accusations of rape.

Nothing is spared in the mind games between the two superpowers (US and China) to discredit each other.

Reports on the issue have come thick and fast from CNN and BBC, almost on a daily basis, in fact.

It’s hard to ignore that since the protests in Hong Kong began, they have become more involved in instigative journalism than investigative journalism.

Since the racist campaign by Donald Trump, where China was blamed for the spread of the coronavirus, Americans and many ill-informed Westerners have looked at ethnic Asians – especially those with Chinese features – negatively.

They have lumped all Orientals together as Chinese, just like how some think turbaned Sikhs with beards must be Taliban.

Now, under the Biden Administration, there is little difference, except perhaps Joe is less antagonistic, though the anti-China sentiments remain.

From the coronavirus to Huawei, and Tik Tok through to purported spy scholars and the South China Sea, and now Xinjiang cotton, it has become a concerted campaign.

We all know the US has little love for Muslims anywhere in the world.

The US has dropped enough bombs in Iraq, Syria, Libya, Afghanistan, as well as imposed sanctions against Iran, to substantiate that claim. The US has also turned a blind eye to the plight of the Palestinians.

These assaults were launched on the pretext of destroying weapons of mass destruction owned by the Saddam Hussein and Muammar Gaddafi regimes, though we now know fact from fiction.

While the two weren’t angels (but more dictators), the fanatical Islamic State took over after the two were deposed and worsened the situation.

Now, the attention is China. It’s the perfect villain – communist rule, no elections and a campaign against Muslims in Xinjiang.

Most Americans can neither pronounce Xinjiang nor point it out on a map, although that seems a moot point to them.

The truth is, the US is jittery because its dominance is over. The world order has changed.

While the US was busy executing its campaign in the name of upholding human rights and western values, and burning trillions of dollars on arsenal, the Chinese spent the last decades building their nation and eradicating poverty.

No one should be surprised when China overtakes the US in the world economy. It didn’t happen overnight, though.

Beijing, Shanghai, Shenzhen and Guangzhou may not be representative of the whole of China, especially compared to third-tier cities and rural areas, but credit where it’s due for the absence of homeless colonies in the cities.

As a Malaysian who has regularly visited China, I feel poor whenever I’m there. The glitzy skyscrapers, efficient transport system, low crime rate, affluence and orderly city administration has shown that China has certainly arrived.

The Chinese have become visibly wealthier and sophisticated, and while their tendency to flaunt their wealth rubs many the wrong way, they have simply become what the early rich Americans used to be. The rich Chinese are loud and brash, but along the way, they – just like the Americans did then – will change.

Rather than demonise China and its people, the US could do well with promoting its values, many of which are universal in nature, such as the rule of law, protecting individual rights, improving living standards and driving the engine of innovation.

The US remains the preferred destination for most people seeking migration.

The immigrants, including Muslims who refused to integrate, could have chosen Saudi Arabia, Iran, Qatar, Kuwait or Senegal, but they picked the US.

We embrace American culture and its lifestyle, especially Hollywood movies, Disneyland, burgers, Coca- Cola and music. That speaks volumes of how most of us admire the US.

While the Chinese are now at a stage where they are content with growth and material wealth, they will eventually question issues like environment, inequality and self-suffrage, when they find themselves without a safety net.

The expansion of the middle class has always been similar all over the world. When the stomach and pockets are full, people have time to talk about democratic ideals.

But for now, the chaos and destruction in Hong Kong and racism in the US have given reason for China, and Chinese all over the world, to push back, or even detest the aggressive campaign by the US. This is nothing more than blatant bullying.

It isn’t fair play, unlike what the US claims, because there’s clearly a lack of respect for competition.

We all believe “democracy is the worst system of government, except for everything else, ” as Winston Churchill said. It’s loud and messy, as we know, but power is more diffused in democracy, where it’s equally shared through the population, as James Stavridis, a retired US Navy admiral put it.

The Xinjiang campaign will come back to haunt the US. Unlike other Muslims in China, the Uighur have indulged in ISIS activities, including being actively involved in Syria, where many combatants are members of an Al Qaeda offshoot.

Reuters and Associated Press have reported of at least 5,000 Uighur in ISIS operating in Syria and Iraq.

Many of them from the outlawed Turkistan Islamic Party, are pushing for an Islamic state in Xinjiang, which China surely won’t tolerate.

That perhaps explains why China takes a different approach to the Uighur compared to other Muslims, though these actions remain open to debate.

But here’s the irony – while the US and its western allies are busy drumming up the issue, the powerful Muslim countries led by Saudi Arabia, along with 36 other countries, have defended China’s policies in Xinjiang in a letter released in 2019.

The world is not keen on getting entangled in an escalating trade war between the US and China.

We want both countries to work together, if they really believe and practise what they preach to the rest of us, the minion nations. And if they do, the world stands to benefit immeasurably.

 Wong Chun Wai

Wong  Chun Wai Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 35 years in various capacities and roles. He is now group editorial and corporate affairs adviser to the group, after having served as group managing director/chief executive officer. On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

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BBC's Beijing correspondent John Sudworth left the Chinese mainland without notifying Chinese officials or fulfilling any departure-procedures required of a foreign resident journalist in China. He has "fled" to Taiwan and made himself the center of a breaking news. Some people in Xinjiang plan to seek legal redress against him and sue him for spreading misinformation.

 

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Winners, losers in Xinjiang cotton row

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