U.S. chip maker Intel (NASDAQ:INTC) apologized in China on Thursday after its letter telling suppliers not to source products or labor from the Xinjiang region triggered a backlash, making it the latest western firm to be tripped up over rights issues in the country.
Intel recently published what it described as an annual letter to suppliers, dated December, that it had been "required to ensure that its supply chain does not use any (labour) or source goods or services from the Xinjiang region”, following restrictions imposed by "multiple governments".
The United States has accused China of widespread human rights abuses in Xinjiang, home to the country’s predominantly Muslim Uyghurs, including forced labour. Beijing has repeatedly denied the claims.
Intel’s letter, on the company’s website and in several languages, sparked criticism in China from state and social media, with calls for a boycott.
In a Chinese-language statement on Thursday on its official WeChat and Weibo accounts, Intel said that its commitment to avoid supply chains from Xinjiang was an expression of compliance with U.S. law, rather than a statement of its position on the issue.
"We apologize for the trouble caused to our respected Chinese customers, partners and the public. Intel is committed to becoming a trusted technology partner and accelerating joint development with China," Intel said.
Other big multinationals have come under pressure over their aims to comply with sanctions related to Xinjiang while continuing to operate in China, a massive market and supply base.
Intel, the company dubbed "Mr. Chips", opened Thursday up 45 cents in New York to $51.42.
