What's the deal with Chinese cotton and fashion brands

Over the last few weeks, one of the most discussed topics within the fashion industry was the controversy over the traceability and social sustainability of high-quality cotton in the Xinjiang region, responsible for 20% of the world's cotton production. The main accusation aimed at China is that it's using the forced labour of about a million Uiguiri prisoners, held in "re-education camps" in that very region. Here's a quick recap of what happened: 

• On October 21, 2020, the Better Cotton Initiative, an association of cotton brands and producers, announced that since March it has stopped its activities in the region, including those certifying the ethics of harvesting methods. Shortly before, Worldwide Responsible Accredited Production had done the same. 
• On 13 January 2021, the US imposed a veto on Xinjiang cotton imports, claimed that it was the product of forced labour by the Muslim community of Chinese Uyghurs, held in "re-education" camps. Other countries, including those in the EU, vetoed it shortly afterwards. China officially calls the accusation of forced labour a 'political lie'.
• Some brands such as H&M, Nike, adidas, Tommy Hilfiger, Converse, Burberry and New Balance and in general the various members of the Better Cotton Initiative announced that they would suspend the use of Xinjiang cotton.
• On March 24, 2021, H&M was removed from all major e-commerce platforms in the country such as Tmall, Taobao, JD.com and Pinduoduo.
• In the following days Nike, adidas and Burberry began to lose all their Chinese brand ambassadors and influencers, who ceased contracts and closed collaborations. More strikingly, Burberry's collaboration with the video game Honor of Kings is cancelled. 
• The shares of Chinese brands such as Li-Ning, Anta Sports increase in value while those of other brands fall. Japan's Muji, Inditex and Hugo Boss do not adhere to the cotton veto on the grounds of the high quality of Xinjiang cotton. 

What does this controversy mean for the fashion world?

The luxury industry depends on China, its market and the purchasing power of its inhabitants: according to economic reports, in fact, within four years the Chinese market will be responsible for half of all sales in the world of luxury. At the same time, the ethics of its practices have become a very important selling point for fashion brands. All brands that have raised uncomfortable questions about the nature of the "re-education camps" in which about a million Uyghurs are held have been ostracized by the wealthy Chinese market – implying a potentially disastrous impact on their turnover. Instead, brands that proudly promote the use of Xinjiang cotton are "rewarded" by getting more sales and a rise in stock market indexes. 

Ultimately, however, this still-evolving situation has opened up worrying scenarios about the future of fashion. If luxury brands depend on China, can they diverge from the country's political agenda in the future in the face of serious suspicions such as forced labour camps? Or should we expect a fashion industry that is under this agenda despite the declarations of ethics and sustainability? There are two possible outcomes: 

• Wanting to avoid possible economic damage, the big names in fashion may decide to stay away from the issue – but expose themselves to potential controversies in the West and the United States where, paradoxically, the issue of Uyghurs is known to the public in more detail than in China.
• Wanting to avoid possible economic damage, the big names in fashion may decide to stay away from the issue – but expose themselves to potential controversies in the West and the United States where, paradoxically, the issue of Uyghurs is known to the public in more detail than in China.