Tesla criticised for opening showroom in China’s Xinjiang region -Breaking
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© Reuters. FILEPHOTO: This image taken January 7, 2021 shows the Chinese flag as well as the logo for Tesla. It was captured through a magnifier. REUTERS/Dado RuvicSHANGHAI (Reuters), – Tesla (NASDAQ) has been criticised by U.S. rights organizations and trade groups for its announcement to open a showroom in Xinjiang. It is the latest foreign company caught up in tensions in relation to the western Chinese far-western region.
Xinjiang, which has been a major point of contention between China and Western governments, has seen more than a million Uyghurs, and other Muslim minorities, being held in detention camps.
China denies any allegations of forced labor or other abuses. It says that these camps offer vocational training, and companies must respect their policies.
On Friday, the U.S.-based electric car manufacturer announced that its showroom was opening in Urumqi’s region capital of Xinjiang. The post stated that the showroom will open in Xinjiang on the final day of 2021.
Tuesday’s criticism came from the Council on American-Islamic Relations. This is the largest U.S. Muslim advocate organization. They said Tesla was “supporting genocide”.
The United States has labelled China’s treatment of ethnic Uyghurs and other Muslims in Xinjiang as genocide. Over the matter, the United States and some other countries have planned a diplomatic boycott against the Beijing Winter Olympics.
“Elon Musk must close Tesla’s Xinjiang showroom,” Council on American-Islamic Relations said on its official Twitter (NYSE:) account, referring to Tesla’s founder.
A U.S. senator Marco Rubio and a trade group called the Alliance for American Manufacturing voiced similar concerns.
Tesla didn’t immediately reply to our request for comment. The automaker has an operation in Shanghai, and it is increasing production in this area due to the rising demand in China.
Tensions between China and the West over Xinjiang have ensnared a number of foreign companies in recent months. They are trying to find a balance with China’s market power and China’s supply base.
In July, Swedish fashion retailer H&M reported a 23% drop in local currency sales in China for its March-May quarter after it was hit by a consumer boycott in March for stating publicly that it did not source products from Xinjiang.
U.S. chipmaker Intel (NASDAQ) received similar requests last month after it told its suppliers to not source labour or products from Xinjiang. This prompted Intel to apologize for the “trouble caused to our valued Chinese partners, customers and the general public”.
While some companies are working to minimize their regional supply chain exposure, Washington prohibits certain imports like Xinjiang Cotton or blacklists Chinese businesses it believes have aided Beijing’s policies there. However, there are many stores owned by foreign brands.
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