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Intel’s China apology over Xinjiang remarks shows good business trumps good politics every time
By Prathapan Bhaskaran - Dec 23, 2021, 06:12 PM ET
Last Updated - Jul 18, 2023, 05:50 PM EDT
Intel’s letter to employees and suppliers suggested
they avoid sourcing labor and goods from Xinjiang as required by U.S. law
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mso-bidi-font-family:Arial">U.S. giant apologized following uproar across Chinese
media after a storm in social media
mso-bidi-font-family:Arial">US chipmaker Intel’s [INTC] dramatic apology Thursday
over the content of a letter that mentioned Xinjian, a province in China that has
been in the news over Beijing’s crackdown on its minority Muslim population,
has created even more global uproar. Intel apologized after a backlash across Weibo,
the Chinese equivalent of Twitter [TWTR].
mso-bidi-font-family:Arial">The controversial letter written in December 2021 apparently
said that it “is required to ensure our supply chain does not use any labor or
source goods or services from the Xinjiang region" of China. The letter cited
government restrictions and questions from investors and customers.
mso-bidi-font-family:Arial">Also Read:
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mso-bidi-font-family:Arial">"Although our original intention was to ensure
compliance with US laws, this letter has caused many questions and concerns
among our cherished Chinese partners, which we deeply regret," the company’s
statement on Weibo said.
mso-bidi-font-family:Arial">Allegations of forced labor
mso-bidi-font-family:Arial">Xinjiang has been a hotbed of controversy with
human rights groups accusing Beijing of detaining ethnic Uyghurs and other
Muslim minority groups in "re-education" centers. There have been
allegations of using them for forced labor in firms working directly or indirectly
as part of global tech and retail supply chains.
mso-bidi-font-family:Arial">Read more: Auto"
industry hits a bump as semiconductor shortage pinches amid COVID-19 slump,
unsteady US-China ties
mso-bidi-font-family:Arial">Xi Jinping’s government in Beijing has pushed back
to sanctions from the United States and other Western countries over Xinjiang. Chinese
officials call the camps “vocational training centers” set up to reduce poverty
and fight religious extremism.
mso-bidi-font-family:Arial">An Intel spokesperson told CNN Business in an email
that the company would continue to ensure its
sourcing complies with the relevant laws and regulations in the United
States and other jurisdictions.
mso-bidi-font-family:Arial">"We issued a statement in China to address
concerns raised by our stakeholders there regarding how we communicated certain
legal requirements and policies with our global supplier network," the
company said.
mso-bidi-font-family:Arial">‘Biting the hand that feeds’
mso-bidi-font-family:Arial">Intel's letter triggered a backlash on Chinese
state and social media. Official Communist Party media arm, People's Daily, called
the statement "absurd," adding that Intel is "biting the hand
that feeds it."
mso-bidi-font-family:Arial">Chinese pop star Wang Junkai, the brand ambassador
for Intel Core, announced Wednesday that he had
all ties with Intel over its statement, saying "national interests are
above all else."
mso-bidi-font-family:Arial">On Thursday, Zhao Lijian, China's foreign ministry
spokesperson, said that “claims related to Xinjiang, such as forced labor” are “lies
by US's anti-China forces.” "We hope relevant businesses respect facts,
distinguishing between right and wrong,” he said.
mso-bidi-font-family:Arial">Intel’s sudden apology is seen"
as good business, although not good politics in view of the global
condemnation of Beijing’s human rights record over the treatment of the Uighurs.
U.S.-China relations have remained cold over conflict of interest in political,
defense and business realms.
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