Exclusive | Xinjiang cotton ban, forced labour claims push China to step up plans for domestic Better Cotton Initiative

Switzerland-based Better Cotton Initiative, launched to promote good practice in cotton industry, has been pressured over its handling of forced labour claims in Xinjiang
Plans for the Weilai Cotton, or future cotton, project were made two years ago but were accelerated in January when the Better Cotton Initiative cut off ties with Xinjiang

Xinjiang cotton

Cissy Zhou

Published: 12:00am, 15 Apr 2021

Why you can trust SCMP

China has stepped up plans to launch its own version of the under-fire Better Cotton Initiative after the network cut off all ties with Xinjiang due to concerns about the alleged forced labour issue in the region, according to three people familiar with the matter.

Beijing-based cotton vertical service provider Zhongnong Guoji started the Weilai Cotton, or future cotton, project two years ago, but it did not make much progress until January when two state-backed organisations – the China Fashion Association and the Modern Seeds Development Fund – became involved, according to Zhao Yan, one of the coordinators for the project.

The Switzerland-based Better Cotton Initiative was launched in 2009 to promote good practice in the cotton industry, but has been under pressure recently over its handling of the alleged forced labour issue in Xinjiang.

We have been living with Switzerland’s standards for years, but the country doesn’t even produce cotton. Now it is time to form our own national standards

Zhao Yan, Weilai Cotton project coordinator

“We have been living with Switzerland’s standards for years, but the country doesn’t even produce cotton. Now it is time to form our own national standards,” said Zhao.

Zhao, who will be the chief brand officer for the project, confirmed that the recent international hostility towards Xinjiang cotton had accelerated the project that is expected to demonstrate a “national aspiration” at this “crucial moment”.

The group may also establish a separate company called Weilai Cotton to run the day-to-day affairs and organise various events in the industry, added Zhao, with various preparations still ongoing before the project itself can be launched.

In March last year, the Better Cotton Initiative suspended licensing and assurance activities in Xinjiang due to “persistent allegations” of forced labour.

01:08

Xinjiang, China’s top cotton producer

Then in October, it announced that it was withdrawing from the region, citing “sustained allegations of forced labour and other human rights abuses” leading to “an increasingly untenable operating environment”.

This was in stark contrast to a statement in January 2020, when it told industry publication Apparel Insider that neither its own investigations nor third-party audits found “any evidence of incidences of forced labour on farms within [Better Cotton Initiative] programmes”.

Then last month, the head of its Shanghai branch told state broadcaster CCTV that the organisation had never found evidence of forced labour in Xinjiang.

No explanation was offered for the contradictory messaging, but with the resulting storm of criticism from customers and Chinese officials gaining widespread attention around the world, Beijing decided to push ahead with the Weilai Cotton project.

We hope to improve the overall cotton quality in Xinjiang through this brand, as the cotton quality in Xinjiang is not as good as that of the US and Australia

Luo Yan

“We hope to improve the overall cotton quality in Xinjiang through this brand, as the cotton quality in Xinjiang is not as good as that of the US and Australia,” said Luo Yan, secretary general of the Xinjiang Digital Cotton Research Centre, who took part in the early preparation of the project and helped with recruiting members in Xinjiang.

Weilai Cotton has recruited 32 members in Xinjiang, as well as some domestic fashion brands, according to Luo.

Improving the quality of Xinjiang cotton would be another way to mitigate the risks, Luo said, adding that the government had already started to offer subsidies to better quality products.

A cautionary tale of trying to be all things to all people

In September, Swedish retailer H&M – the world’s third-largest fashion retailer by revenue last year – said it had stopped using Xinjiang cotton, following advice from the Better Cotton Initiative.

US sportswear retailer Nike also said it would no longer source products from the region and would also ensure that its suppliers were not using textiles or spun yarn from the region.

After a notional boycott in March against a number of foreign fashion and sportswear brands, including H&M, Nike, Burberry, Adidas and Uniqlo, Chinese sports brands Anta, Li-Ning and Fila China said they planned to quit the Better Cotton Initiative.

02:38

Global brands face backlash in China for rejecting Xinjiang cotton

According to its website, the Better Cotton Initiative has 2,096 members around the world, including retailers, brands, suppliers and manufacturers, with 491 in China.

The Weilai Cotton project will first look to recruit Chinese brands before considering whether to recruit international brands, Zhao added.

All cotton garments will eventually be tagged with a QR code which will show “the entire supply chain”, according to Zhao.

“By scanning the QR code, you will be able see which farm the cotton is grown in, which cotton processing factory and yarn plant it went to next, and you can even trace how much fabric was purchased in the same batch,” Zhao said.