According to reports from AFP, Bloomberg and other media, the well-known Swedish clothing brand H&M recently announced that due to the so-called “forced labor” issue, the company will interrupt its “indirect business dealings” with the Chinese spinning industry giant Huafu Company. .
In March this year, a report prepared by the Australian Strategic Policy Institute (ASPI) accused H&M of We have business dealings with Huafu Company in Anhui, and Huafu Company’s products have so-called “forced labor” issues. However, H&M once denied direct business dealings with Huafu Company.
On September 15, the U.S. Customs and Border Protection announced a ban on importing products from 5 Chinese companies and 1 manufacturing plant on the grounds of suspected forced labor. H&M Company immediately announced the termination of “indirect business dealings” with Huafu Company, and at the same time, it will conduct investigations on all Chinese suppliers to ensure that their employment conditions do not involve so-called “forced labor.”
Huafu Company is a well-known textile company in my country. It began investing in Xinjiang in 2006. According to data from its official website, Huafu Xinjiang Company has now formed a spinning production capacity of 900,000 spindles, with an annual output of 120,000 tons of colored spinning; the Huafu Aksu Industrial Park, which is under construction, has a project scale of 1 million spindles of colored spinning. Achieve an annual output of 160,000 tons of colored yarn.
H&M is an internationally renowned fashion retail giant. As of August 31, 2020, H&M had a total of 449 stores in mainland China. As the epidemic situation in China improves, H&M’s sales in mainland China have gradually recovered. Headquartered in Shanghai, Hennes & Mauritz (Shanghai) Commercial Co., Ltd. (China H&M Company) is a subsidiary of the Swedish parent company H&M Hennes & Mauritz AB in China. According to reports, H&M’s pre-tax profit in the third quarter reached 2 billion Swedish kronor, eight times what analysts expected.
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