Claims against Walmart in China for lack of goods from Xinjiang

Chinese social media platforms erupted on Friday over allegations that Walmart Inc. had stopped selling Xinjiang items in its supermarket chain only to Sam’s Club member customers in China, increasing the risk that the world’s largest retailer will be caught up in escalating tensions between China and U.S over the western province.

Screenshot posts showing no search results for the word “Xinjiang” (Sinkiang) in the Sam’s Club app went viral on Weibo, the Chinese social media platform similar to Twitter on Friday. Users claimed that they had previously purchased items such as Xinjiang apples and dates on the app and that the items had been recalled by Walmart.

The discussion came a day after US President Joe Biden signed a law banning goods manufactured in the province.

It is unclear if the Xinjiang products were previously available at Sam’s Club, and if so, when they were recalled. Representatives for Walmart in China and the US did not immediately respond to requests for comment.

The topic was the main trend on Weibo as of Friday afternoon, with more than 170 million views and more than 10,000 posts. Walmart risks being caught up in China’s rising consumer nationalism, which has dealt a blow to brands like Dolce & Gabbana or Hennes & Mauritz, causing sales to plummet after companies conflicted with sensitivities. policies.

Xinjiang province, where China is accused of violating human rights against the country’s Uighur minority, is a particularly sensitive issue for local consumers. Brands such as H&M and Nike Inc. have been boycotted for saying they will not use Xinjiang cotton, and the Swedish retailer was removed from local e-commerce platforms for its stance.

The law enacted Thursday by President Biden, which prohibits companies from selling products made from Xinjiang components in the US unless they can show that there was no forced labor, has already raised tensions. Intel Corp. apologized to its Chinese customers this week after asking its suppliers not to use labor or products from Xinjiang to ensure compliance with US law.

The stakes are high for Walmart, which is struggling to stay in China’s highly competitive supermarket sector. Although it pioneered the hypermarket format in China decades ago, market share has remained flat amid pressure from local players such as e-commerce giant Alibaba Group Holding Ltd.

Sam’s Club has been Walmart’s bright spot in China, where the chain is seen as a premium grocery destination that sells primarily imported goods. The company plans to have 100 stores in the country by 2028, up from 33 today.