A quarrel over allegations of human-rights abuses in China continued as Beijing announced retaliatory sanctions on individuals in the U.S. and Canada and the corporate fallout spread.
Tensions have flared over reports of forced labor being used to harvest cotton in China’s western province of Xinjiang, accusations that Beijing routinely dismisses as politically motivated lies.
Hennes & Mauritz AB stores in parts of China are being closed by their landlords after the Swedish fashion retailer’s comments on Xinjiang prompted an unofficial boycott. Japanese brands Muji and Uniqlo became embroiled in the spat last week, while Oregon-based Nike Inc.’s shares sank as investors took fright at the potential impact on its Chinese business.