France investigates fashion retailers for concealing crimes against humanity in Xinjiang

PARIS, July 1 (Reuters) – The French prosecution has opened an investigation into four fashion retailers suspected of covering up crimes against humanity in China’s Xinjiang region, a judicial source said on Thursday.

The proceedings are linked to charges against China for its treatment of minority Muslim Uyghurs in the region, including the use of forced labor, the source said.

The source told Reuters that Uniqlo France, a unit of Japanese Fast Retailing (9983.T), owner of Zara Inditex (ITX.MC), French SMCP (SMCP.PA) and Skechers (SKX.N) were doing the subject of the investigation, confirming a report from the French media site Mediapart.

“An investigation was opened by the crimes against humanity cell within the anti-terrorism prosecution following the filing of a complaint,” said the source.

Inditex said it rejects the allegations of the legal complaint, adding that it has carried out rigorous traceability checks and will cooperate fully with the French investigation.

“At Inditex, we have zero tolerance for all forms of forced labor and have established policies and procedures to ensure this practice does not take place in our supply chain,” the company said in a statement.

SMCP also said it would cooperate with French authorities to prove the allegations were false.

“SMCP works with suppliers located all over the world and claims to have no direct suppliers in the region mentioned in the press,” said SMCP, adding that it regularly audits its suppliers.

Uniqlo France was not immediately available for comment outside of European business hours. Skechers said he is not commenting on the pending litigation. He referred Reuters to a March 2021 statement in which he said he maintained a strict supplier code of conduct.

Two non-governmental organizations (NGOs) lodged a complaint in France in early April against multinationals for concealment of forced labor and crimes against humanity.

UN experts and rights groups estimate that more than a million people, mostly Uyghurs and other Muslim minorities, have been detained in recent years in a vast system of camps in the western region of the country. Xinjiang in China.

Many former detainees said they had been subjected to ideological training and abuse. Rights groups say the camps have been used as a source of coercive and poorly paid labor.

China denies all accusations of abuse.

Several Western brands, including H&M (HMb.ST), Burberry (BRBY.L) and Nike (NKE.N) have fallen victim to consumer boycotts in China after raising concerns about forced labor in Xinjiang. Read more

In March, the United States, the European Union, Britain and Canada imposed sanctions on Chinese officials for human rights violations in Xinjiang. Beijing immediately retaliated with its own punitive measures. Read more

Reporting by Benoit Van Overstraeten in Paris Additional reporting by Richard Lough in Paris and Jesus Aguado in Madrid Editing by Kirsten Donovan and Matthew Lewis

Our Standards: Thomson Reuters Trust Principles.