The Chinese government has warned clothing brand H&M it will not earn a penny in the country if it refuses to buy cotton from the Xinjiang region.
H&M and other western brands are facing a backlash in China after they expressed concern about the alleged use of forced labour in cotton production.
China has been accused of forcing members of the mostly Muslim Uyghur minority to pick cotton in Xinjiang.
China denies this and, in recent days, critical brands have faced boycotts.
“I don’t think a company should politicise its economic behaviour,” said Xu Guixiang, a Xinjiang government spokesman, at a news conference on Monday. “Can H&M continue to make money in the Chinese market? Not anymore.”
Mr Xu said the decision by some brands to stop buying Xinjiang cotton was “not reasonable”, comparing it to “lifting a stone to drop it on one’s own feet”.