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On the same day (Mar. 31) it reported a quarterly loss, H&M released a statement reaffirming its "long-term commitment" to China.

"We are dedicated to regaining the trust and confidence of our customers, colleagues, and business partners in China," said the Swedish fast-fashion retailer.

Marketing Week reported that H&M group’s net sales decreased by 21 per cent year on year over the first quarter of 2021, with the company posting a pre-tax loss of £115 million (S$213.9 million) over the quarter.

The multinational firm has attributed the financial loss entirely to the closure of stores brought about by Covid-19 restrictions.

Backlash after comments of Uyghurs

The statement came as H&M and Nike found themselves the focus of an uproar regarding comments the companies had made in 2020 concerning the alleged use of Uyghur forced labour in cotton production.

Research findings released by U.S.-based non-profit think tank Center for Global Policy alleged that more than half a million people from ethnic minority groups in Xinjiang have been coerced into picking cotton — a claim that China has refuted multiple times.

According to the BBC, many in China were calling for a boycott of the retail giants after the comments resurfaced on social media recently.

Several major Chinese e-commerce platforms subsequently withdrew H&M products from their websites.

While H&M's latest statement didn't mention their comments on Xinjiang or the Uyghurs, it did note the "remarkable progress"  it had "witnessed...within the Chinese textile industry".

It said in its statement:

"Being at the forefront of innovation and technology, China will clearly continue to play an important role in further developing the entire industry.

We are proud our suppliers are being part of that development and we want to continue contributing to driving progress together with our partners and stakeholders in the country."

The retailer also said that it wanted to work with the relevant stakeholders to "build a more sustainable fashion industry".

China working to overturn unfavourable narrative

On its end, Beijing has maintained that a serious “terrorist” threat lurked in Xinjiang, reported the Financial Times.

China's propaganda has already started to against #boycottxinjiangcotton.
Happy Uyghurs are dancing and enjoying picking cotton that there is no forced labor. For brutal China's regime, anyone who can only play dance is the happiest person in the world. pic.twitter.com/6Wkcg2O0Uj

— AynurUyghur (@Aynur35423962) March 29, 2021

A four-part documentary series was released by state broadcaster CGTN that justified the government’s policies by attributing violence in the region to international terrorist groups.

Another clash with China, new controversy with Vietnam

Despite its efforts to smooth things over with China, by the end of last week, H&M again found itself under the pump.

Reuters reported that Chinese authorities had asked H&M to change a "problematic map of China" on its website.

According to the South China Morning Post, H&M's later compliance with the request to correct a map that showed what's commonly known as the nine-dash line — used Beijing uses to claim about 90 per cent of the disputed waters of the South China Sea — stirred controversy in Vietnam.

The Southeast Asian country — whose own social media users lashed out at the retailer — also holds claims to some of the territories within the nine-dash line.

Vietnamese law prohibits companies from utilising images that infringes on the country's sovereignty.

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Top image by Andrew Koay