The Chinese Government has taken up arms against H&M (HNNMY  ) and Nike (NKE  ) after statements made by the firms last year criticizing the use of forced labor were uncovered.

Swedish clothing firm H&M has been all but eradicated from the internet in China. The firm was pulled from various major online stores such as Alibaba (BABA  ), removed from Chinese ride-sharing apps and navigation apps, and had its phone app removed from stores. H&M, along with Nike and other brands such as Burberry (BURBY  ), and Adidas (ADDYY  ), were all subjected to ridicule and boycott on Chinese social media.

The backlash centers around statements made by the firms expressing concern over the treatment of the Uyghur people and other ethnic/religious minorities in the Xinjiang province. Since 2014, the Chinese Government has employed increasingly more draconian measures to curb the Uyghur/Muslim population in the region, including detainment in concentration camps, a move that many academics, some governments, and activists have referred to as an act of ethnic cleansing or genocide. According to reports, detainees in the region are being used for forced labor to harvest and process cotton for export. The revelation put pressure on many firms to distance themselves as outrage against China's treatment of the Uyghur and other minorities deteriorated.

"Everyone is forced to do all types of hard labor or face punishment," said Tahir Hamut, who was detained at a concentration camp as a child. "Anyone unable to complete their duties will be beaten."

Despite mounting pressure from the international community, including a slew of sanctions by the United States and the European Union, China has brushed aside any criticism. The Chinese Government's actions have forced both local and foreign firms to pick a side as the divide between China and western nations rapidly widens. Local firms have taken action ostensibly in support of the Government, such as Tencent (TCEHY  ), which removed Burberry-designed outfits from a game. South Korean shoemaker FILA issued a statement that it currently purchases cotton from Xinjiang and would continue to do so. The divide will likely worsen, given the growing cooperation between the U.S. and its allies under the Biden administration and the looming specter of the Holding Foreign Companies Accountable Act, which is poised to delist Chinese firms from U.S. stock exchanges.