Uniqlo 'doesn't use Xinjiang cotton'

Cici Cao

Uniqlo owner Fast Retailing (6288) does not use cotton from China's Xinjiang region, says chief executive Tadashi Yanai.

He also revealed the group could triple its stores in China to 3,000.

It is the first time that Fast Retailing has spoken about the contentious issue, after Yanai declined to confirm or deny whether it uses cotton from Xinjiang in 2022, saying he wanted to "remain neutral between the US and China."

"We don't use cotton from Xinjiang," he said during a talk about the source of its raw materials and manufacturing process.

Xinjiang cotton fell out of favor after it was revealed to have produced using forced labor of the Uyghur Muslim minority in 2021.

Though China denies the allegations, several global brands announced plans to take down products using the cotton, including Swedish clothing retailer H&M, American shoemaker Nike and British luxury fashion Burberry.

The brands once faced boycotts from Chinese consumers, with 20 H&M mainland retail stores closed and Nike's 2021 revenue in China down 9 percent year-on-year.

Yanai said Asia is still its biggest market.

"China has 1.4 billion people, and we only have 900 to 1,000 mainland stores," said Yanai, adding that the number could rise to 3,000.