China’s anti-graft agency on Friday accused US retail giant Walmart Inc and its Sam’s Club chain of “stupidity and shorted-sightedness” after Chinese news outlets reported Sam’s Club had removed Xinjiang-sourced products from stores.
Last week, Sam’s Club came under fire in China after several news outlets shared videos and screenshots on the Weibo social media platform that they said showed products from the far-western Chinese region of Xinjiang had been removed from the store’s online app.
The social media row erupted after US President Joe Biden signed into law on December 23 legislation banning imports from Xinjiang over concern about forced labour there.
Walmart is the latest foreign firm to be tripped up by Western pressure over Beijing’s treatment of Uyghurs and other minority Muslims in Xinjiang and China’s importance as a market and supply base.
China rejects accusations of forced labour or any other abuses in Xinjiang.
Neither Walmart nor Sam’s Club has made public statements on the backlash against them in China, and Walmart did not respond to a request for comment on Friday.
The ruling Communist Party’s Central Commission for Discipline Inspection (CCDI) accused Sam’s Club of boycotting Xinjiang products and trying to “muddle through” the controversy by remaining silent.
“To take down all products from a region without a valid reason hides an ulterior motive, reveals stupidity and shortsightedness, and will surely have its own bad consequences,” it said on its website.
China is a huge market for Walmart, which generated revenue of $11.43 billion in the country during its fiscal year that ended January 31. Of 423 retail units Walmart operates in China, 36 are Sam’s Club stores, according to its website.