Stock Of Uniqlo’s Parent Drops After Xinjiang Remarks

Shares of Fast Retailing dropped as much as 4.5%—their steepest decline since Sept. 30—after its chairman stated that the retailer does not source cotton from China’s Xinjiang region, Bloomberg News reported.

Similar to Fast Retailing, US and European companies have faced pressure to distance themselves from factories in Xinjiang. I Photo: Uniqlo Linkedin

Chairman Tadashi Yanai made the comments during a BBC interview, citing human rights concerns in Xinjiang, where the US has imposed trade restrictions.

A Fast Retailing representative told Bloomberg that the company is monitoring whether Yanai’s remarks will lead to reduced demand or boycotts in China. Analysts noted that the controversy has heightened scrutiny of Uniqlo’s operations on Chinese social media during a critical winter sales period.

Fast Retailing was the biggest drag on Japan’s benchmark Topix Index during Monday morning trade, despite the index rising 0.7%.

Greater China accounts for over 20% of the company’s ¥3.1 trillion ($20.7 billion) annual revenue. Uniqlo operates 1,031 stores across mainland China, Taiwan, and Hong Kong, as part of its global network of 2,509 stores.

US and European companies have faced pressure to distance themselves from factories in Xinjiang, where reports have documented alleged forced labor camps—a claim China denies.