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Intel apologizes in China over Xinjiang statement

(Reuters) (The Jakarta Post)
Hong Kong
Fri, December 24, 2021

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Intel apologizes in China over Xinjiang statement

U

nited States chip maker Intel apologized on Thursday to Chinese customers, partners and the public after a letter telling its suppliers not to source products or labor from the western region of Xinjiang caused a backlash.

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".

That letter, on the company's website and in several languages, sparked criticism in China from state and social media, with calls for a boycott.

In its Chinese-language statement on Thursday on its official WeChat and Weibo accounts, Intel said that its commitment to avoid supply chains from Xinjiang was an expression of compliance with US law, rather than a statement of its position on the issue.

"We apologize for the trouble caused to our respected Chinese customers, partners and the public. Intel is committed to becoming a trusted technology partner and accelerating joint development with China," Intel said.

Intel did not immediately respond to a request for comment.

It is the latest multinational to come under pressure as it aims to comply with sanctions related to Xinjiang while continuing to operate in China, a massive market and supply base.

United Nations experts and rights groups estimate more than a million people, mainly Uighurs and members of other Muslim minorities, have been detained in recent years in a system of camps in Xinjiang.

China denies abuses in Xinjiang and says its policies there help combat extremism.

On China's Twitter-like Weibo, singer Karry Wang said he would no longer serve as brand ambassador for Intel, adding in a statement that "national interests exceed everything".

Many Weibo users derided Intel's apology as an attempt at protecting sales in China, with one saying "a mistake is a mistake! Retract the statement about Xinjiang!"

The hashtag "Is Intel's apology sincere?" was trending on Weibo on Thursday afternoon.

Intel, which has 10,000 employees in China, said in its apology that it "respected the sensitivity of the issue in China."

The company's China presence includes assembly and test sites in Shanghai and Chengdu.

In July, Swedish fashion retailer H&M reported a 23 percent hit in local currency sales in China for its March-May quarter after it expressed concerns about human rights in Xinjiang.

The Global Times, a nationalist tabloid run by the ruling Communist Party's People's Daily stable of newspapers, branded Intel's statement as "absurd", adding that the company — which earned 26 percent of its total revenues from China in 2020 — was "biting the hand that feeds it".

"What we need to do is to make it increasingly expensive for companies to offend China so their losses outweigh their gains," the newspaper said in an editorial.

Multinational companies have come under pressure as they aim to comply with Xinjiang-related trade sanctions while continuing to operate in China, one of their biggest markets.

The Global Times said in its editorial that multinationals "should be able to endure, properly handle and balance pressure from all parties".

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