Intel: the latest US Company to fold to China

Written by Associate Editor, Kevin Casserino

US chipmaker Intel has removed references to Xinjiang, China in its most recent annual letter to suppliers.[1] This removal comes after Intel’s December 23 letter to its suppliers in which they stated that Intel had been “required to ensure that its supply chain did not use any labor or sourced any goods from the Xinjiang region.”[2] Following the December 23^rd letter, Chinese social media users and Chinese state-run media denounced Intel for their specific mention of the controversial region.[3] Intel has since apologized and told Chinese social media users that the letter was written to comply with U.S. law and does not represent their position on Xinjiang.[4]

The United States, amongst several other countries, has accused China of committing mass genocide of ethnic minorities in Xinjiang.[5] Multiple multi-national organizations including Human Rights Watch have also published reports accusing China of committing crimes against humanity in the Xinjiang region.[6] These organizations allege that China has detained over a million Uyghur Muslims, an ethnic minority in China, in re-education camps over the past few years.[7] Some evidence exists that the Uyghurs have been used for forced labor, Uyghur women have been forcibly sterilized, and some camp detainees have alleged they were tortured or sexually abused.[8] China has denied all allegations of human rights abuses in Xinjiang.[9]

Intel now joins the National Basketball Association, Calvin Klein, Tiffany & Co., Swarovski, and Coach, as multinational companies who have issued apologies to China after one of their images or messages offended the Chinese government.[10]  Additionally, many brands have prioritized ensuring that their messaging does not offend China or the Chinese Government. As of 2020, China was the United States 3^rd largest goods export market totaling 124.5 billion dollars.[11]

President Biden has recently signed a bill that bans imports from the Xinjiang region and imposes sanctions on individuals responsible for forced labor in the region.[12] The White House has made its stance clear on their views of the Xinjiang region, it will be interesting to see if companies will do the same or if they will continue to ignore the alleged human rights violations occurring in Xinjiang.

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[1] Reuters – Intel deletes reference to Xinjiang after backlash in China – January 11, 2022, available at https://www.reuters.com/world/china/intel-deletes-reference-xinjiang-after-backlash-china-2022-01-11/

[2] Id.

[3] Wall Street Journal – Intel Erases Reference to China’s Xinjiang After Social-Media Backlash – January 10, 2022, available at https://www.wsj.com/articles/intel-erases-reference-to-chinas-xinjiang-after-social-media-backlash-11641808676

[4] Id.

[5] BBC News – Who are the Uyghurs and why is China being accused of Genocide – June 21, 2021, available at https://www.bbc.com/news/world-asia-china-22278037

[6] Id.

[7] Id.

[8] Id.

[9] Id.

[10] Business Insider – Dior groveled to China after it used a map that didn’t show Taiwan as part of the country. Here are other times Western brands caved after offending the Communist Party – October 17, 2019, available at https://www.businessinsider.com/western-companies-apologize-china-communist-party-list-2019-10

[11] Office of the United States Trade Representative – The Peoples Republic of China U.S.-China Trade Facts, available at https://ustr.gov/countries-regions/china-mongolia-taiwan/peoples-republic-china

[12] CNBC – U.S. bans imports from China’s Zinjiang region, citing human rights abuses, December 23, 2021, available at https://www.cnbc.com/2021/12/23/us-bans-imports-from-chinas-xinjiang-region-citing-uyghur-forced-labor.html