Intel apologizes in China over Xinjiang supplier statement
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The entrance to Intel Headquarters in Santa Clara (California), U.S.A, Tuesday, October 19, 2021.
David Paul Morris | Bloomberg | Getty Images
U.S. chipmaker IntelChina has apologized for the letter it sent to its suppliers requesting that they not source goods or labor from the Xinjiang Region triggered a backlash. It is now the latest west firm to face legal issues.
Intel recently published what it described as an annual letter to suppliers, dated December, that it had been “required to ensure that its supply chain does not use any labor or source goods or services from the Xinjiang region”, following restrictions imposed by “multiple governments”.
China is being accused of widespread human rights violations in Xinjiang by the United States. The area houses the majority Muslim Uyghurs and also includes forced labor. Beijing denied these allegations repeatedly.
The letter from Intel, posted on its website in multiple languages and in a single language, has been met with criticism by the Chinese state as well as social media users. There have also been calls to boycott.
Intel made a Chinese-language statement Thursday via its WeChat account and Weibo account, stating that its pledge to avoid supply chain from Xinjiang was not a statement but an indication of its compliance with U.S. Law.
“We deeply regret the inconvenience that we caused our valued Chinese customers, partners, and the general public. Intel stated that Intel was committed to being a reliable technology partner with China and accelerate joint development.
Intel has not yet responded to Reuters’ request for comment.
Another big multinational company has been under severe pressure for not complying with the sanctions on Xinjiang and continuing operations in China. China is a vast market and an important supply source.
China’s Weibo-like Twitter, Karry Wang stated that he will no longer be a brand ambassador for Intel. He also said that his “national interests surpass everything”.
Weibo’s users dismissed Intel’s apology, claiming it was an attempt to preserve sales in China. Take out the statement on Xinjiang.
Is Intel sincere in its apology? On Thursday afternoon, the hashtag “Is Intel’s apology sincere?” was trending on Weibo.
Intel has 10,000 workers in China. It apologized and said that it respected the sensitive nature of the matter in China.
China’s foreign minister stated that “Accusations of Forced Labor in Xinjiang were lies constructed by anti-China American troops” to destabilize China and slow its development.
Zhao Lijian, a spokesperson for the foreign ministry said that they had taken note of the statements and hoped the company would correct them.
Intel has a presence in China, with test and assembly sites located in Shanghai and Chengdu.
In July, Swedish fashion retailer H&M reported a 23% hit in local currency sales in China for its March-May quarter after it expressed concerns about human rights in Xinjiang.
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