SIMIC

Posts of screenshots showing no search results for the word "Xinjiang" on Sam's Club's app went viral Friday on Weibo, China's Twitter-like social media platform. Users claimed they had previously purchased items like Xinjiang apples and dates on the app and that the items had been de-stocked by Walmart.

The discussion came a day after US President Joe Biden signed into law a bill banning goods made from the province.

It is unclear if Xinjiang-sourced goods were previously available for sale in Sam's Club, or when they were taken down if so. Walmart representives in China and the US did not comment.

The topic was the top-trending item on Weibo, with more than 170 million views and over 10,000 posts. Walmart is at risk of being ensnared by the rising consumer nationalism in China that's dealt a blow to brands from Dolce & Gabbana to Hennes & Mauritz, sending sales plunging after the companies ran afoul of communist sensitivities.

China is accused of human rights abuses against its Uyghur Muslim minority. Brands like H&M and Nike have been boycotted for saying they won't use Xinjiang cotton, with the Swedish retailer being banned from local ecommerce platforms.

The bill signed by President Biden, bans companies from selling goods in the US made with Xinjiang components unless they can prove forced labour wasn't involved.

Intel apologised to Chinese customers earlier this week after asking suppliers not to use any labour or products sourced from Xinjiang to ensure compliance with the US law.

The stakes are high for Walmart, which is struggling to keep up in the highly competitive supermarket industry in China. Though it pioneered the hypermarket format in China decades ago, market share has remained flat amid pressure from local players like ecommerce giant Alibaba.

Sam's Club has been the bright spot for Walmart in China, where the chain is seen as a premium grocery destination selling mostly imported goods. The company plans to have 100 stores in the country by 2028, up from its current 33.