The Strategist

WSJ: China's boycott of Walmart sends a message to US companies

12/30/2021 - 05:22

The Wall Street Journal (WSJ) cautions that US businesses risk reducing their investment in China or possibly exiting the sector entirely. According to the newspaper, Walmart's boycott in China might serve as a model for similar company activities.

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According to the newspaper's interviewees, American businesses are currently in a terrible situation. Political boycotts aggravate the problem, but so do falling demand, inflation, and the severe tactics used to combat new coronavirus outbreaks. Firms will have to hunt for work elsewhere if the situation does not improve.

Walmart has been chastised for allegedly refusing to import goods from the Xinjiang region. Users on social media claimed they couldn't find these items in online stores and called for a boycott of the retailer. The fact is that the United States has approved legislation effectively prohibiting imports from China's autonomous area, which is home to a majority of Uighur people, unless corporations can verify that human rights are respected in their factories.

Authorities in the United States have decided to retaliate against China by detaining shipments whose origin is deemed questionable at customs. The commodities in question were manufactured with the use of forced labor. Beijing, for its part, has dismissed Washington's allegations of Uighur forced labor in the China as baseless.