by Li Ping

H&M has become the public enemy in China overnight. From wumao (fifty-cents), state media to the Ministries of Commerce and Foreign Affairs, are all howling angrily: how dare you eat Chinese rice and then smash China’s pot! The state media also named and shamed international brands such as Nike, Adidas, Burberry for issuing similar statements announcing they will not use Xinjiang cotton. It has caused some brands’ spokespersons to scramble to terminate the contract to avoid being attacked “Boxer style.” Tactics like stop buying international brands and boycotting celebrities and artists were also used during the 2018 China-U.S. trade war, which was described by the Chinese officials as “an epic trade war.” But this year is the 120th anniversary of the Boxer Protocol, and the 100th anniversary of the founding of the CCP, so its political intention behind these tactics was clearer and stronger. An epic sanction war in response to the sanctioning of the officials has been launched.

An old statement from H&M suddenly got dug out and criticized has definitely something to do with the sanction war between China and Europe. The EU has recently imposed sanctions on four Xinjiang officials and one entity, which was the first time since the June 4 massacre. China immediately retaliated and sanctioned 10 Europeans, including parliamentarians and scholars, plus four entities, including parliamentary institutions and think tanks. What causes concern is, China used to reciprocate equal measures of sanctioning in retaliation to the U.S. sanctions. On Jul 10, 2020, the U.S. imposed sanctions on four Xinjiang officials. In response, China imposed sanctions on three U.S. parliamentarians and one official. On Aug. 7, 2020, the U.S. imposed sanctions on 11 Chinese and Hong Kong officials, including Xia Baolong and Carrie Lam. China then also imposed sanctions on 11 U.S. parliamentarians and heads of human rights organizations.

The unequal sanctions of China to the EU has not only showed that the CCP sees the EU as a soft touch but also highlighted the CCP’s political intention. Hua Chunying, the spokesperson of China’s Foreign Ministry, responded, “China today is not the same as Iraq, Libya, or Syria, still less what it was 120 years ago. The days when foreign powers could force China to open its doors with cannons are long gone.” What Hua blurted out was imprudent, which was disrespectful and insulting toward smaller countries like Iraq. She was so desperate to highlight how strong China is today, compared to when it signed the Boxer Protocol 120 years ago.

But what has the EU sanctioning Chinese officials got to do with opening the doors of China? It is political, not trade sanctioning, and did not ask China to open its market. Apart from ridiculing the human rights situation in the U.S. and Europe, what the CCP can do best is inciting nationalist sentiment within the country and threatening western enterprises and governments with the Chinese market. Wumao and state media obediently acted on command, first targeting H&M, then other international brands such as Nike. A “people’s war” of boycotting international brands has started. China’s Ministry of Foreign Affairs suddenly stepped back, claiming Chinese public opinion cannot be fooled or violated. The people can no longer accept those who “eat Chinese rice and then smash China’s pot.” China’s Ministry of Commerce also disapprovingly demanded related companies respect market rules, correct mistakes, and avoid politicizing commercial issues.

The CCP is very good at politicizing commercial issues, and the Chinese enterprises are good at using patriotism as business opportunities. While the state media and internet platforms are very aggressive and provocative when attacking brands like H&M and Nike and their spokespersons, they avoid discussing whether the Chinese national basketball, football, and athletic teams should terminate their contracts with Nike. They act like bullies only in front of a weaker opponent. At the same time, numerous Chinese clothing brands use this opportunity to declare their use of patriotic cotton regardless of whether they have any connection with Xinjiang cotton or not. They are all fighting to take a slice of the profits made available from the foreign brands forced to withdraw from the market, which has stimulated the sharp increase in share prices.

This epic sanction war, with Xinjiang cotton as the focus, has been promoted by the state media with the slogan “Chinese cotton is soft, Chinese people are tough.” The CCP’s political intention is clear. It wants to tell the world that China, under the leadership of the CCP, has stood up, grown rich, and become strong. It will not accept humiliating agreements like the Boxer Protocol 120 years ago. It is a presentation for the CCP’s 100th birthday and confirmation of how great, glorious, and correct the CCP, especially Xi Jinping, is, to protect Xi’s lifetime leading position.

However, this sanction war might kill the China-EU Comprehensive Agreement on Investment negotiation completed at the end of last year. China agreed, at the last minute, that it will adhere to the rules of the International Labor Organization (ILO) so that the EU will join forces to fight against the U.S. Now China is fighting against the EU and the European/U.S. brands on the subject of Xinjiang cotton and forced labor. When wrecking the source of profits of these international brands, did the CCP realize it is also wrecking its own agenda and becoming the catalyst of a Europe-U.S. alliance?

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