Intel asks suppliers to ban Xinjiang products

Asian Tech Press (Dec 22) -- Intel Corp. recently announced that its supply chain is prohibited from using any labor, sourcing products or services from Northwest China's Xinjiang Uygur Autonomous Region.

An annual letter was posted on Intel's official website, writing to suppliers in six languages including Simplified Chinese, Traditional Chinese, English and Japanese, "Intel is required to ensure our supply chain does not use any labor or source goods or services from the Xinjiang region."

The letter, released in December of this year, is the latest request from Intel to its suppliers, "prohibiting any human trafficked or involuntary labor such as forced, debt bonded, prison, indentured or slave labor."

In response to allegations of "forced labor" in Xinjiang by the United States and other countries, China has long taken a stern stand by saying it is "the lie of the century," and is considered interference in China's internal affairs and political maneuvering under the guise of human rights.

Relevant data show that since 2015, mainland China is Intel's largest market, with revenue in mainland China (including Hong Kong) reaching $20.26 billion in fiscal year 2020, accounting for 26% of its total revenue. And Intel's revenue in the U.S. mainland is only $16.57 billion.

It's worth noting that Intel also listed Taiwan, as a country alongside mainland China, the United States and Singapore in its earnings report.

Full-Year 2020 Financial Results from Intel Corp.

The move sparked broad outrage on Chinese social media. After news broke that Intel had banned Xinjiang products, Chinese netizens flocked to Intel's Twitter-like Weibo account to question the company, "Isn't there long-staple cotton from Xinjiang in the Chinese yuan? Intel, how can you accept this money?"

Last week, the United States introduced the latest bill on import restrictions, which requires that companies be prohibited from importing products from the Xinjiang region, unless the manufacturer of the products can prove that they are free of forced labor.

And Intel can not escape the impact of the U.S. bill.

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