Nike Navigates Controversy Once Again in All-Important China

Nike Inc. is walking a fine line in China -- its fastest-growing market -- amid a brewing controversy over its business practices there.

The ire stems from this conundrum: Embrace cotton from the contentious Xinjiang region, where there are allegations of forced labor, or reject it and risk a boycott in the world’s second-biggest economy.

The controversy has been gaining attention this week -- and sparking share losses for Nike and apparel companies. The Chinese government has rejected the claims of forced labor, with Foreign Ministry spokeswoman Hua Chunying on Thursday calling the reports “malicious lies fabricated by anti-China forces.” ...