US chip maker Intel triggers Chinese media backlash after telling suppliers to avoid Xinjiang labour

Intel’s letter to suppliers, published in several languages including Chinese, cited several compliance codes, including those of the Responsible Business Alliance

China, including Hong Kong, contributed the biggest proportion of Intel’s total revenue in the five years to 2020, according to data from Statista

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Published: 6:30pm, 22 Dec 2021

An open letter from Intel to its suppliers asking them not to use goods or labour from Xinjiang has created a public relations crisis for the US chip maker in China, reflecting the predicament facing American businesses amid escalating geopolitical tensions between Washington and Beijing.

In an open letter to suppliers published on its website, Intel said it has been “required to ensure that its supply chain does not use any labour or source goods or services from the Xinjiang region”.

The letter, published in several languages including Chinese, cited several compliance codes, including those of the Responsible Business Alliance, the world’s largest industry coalition dedicated to corporate social responsibility.

However, the letter did not refer to the Uygur Forced Labour Prevention Act, passed by the US House of Representatives earlier this month, which calls on the international community to reduce imports of any goods made with forced labour from Xinjiang.

In the letter, Intel also said it has received inquiries from investors and customers, asking whether the company purchases goods and services from the Xinjiang region.

On Tuesday, the letter was cited and reported by Chinese websites, including Guancha.cn, a pro-government Chinese news portal, immediately triggering criticism of the US chip maker by some netizens.