Watchdog, Canada's corporate ethics, has launched an investigation into Nike after a complaint filed by a coalition of 28 organizations. The complaint raises concerns about the relationship between Nike and Chinese firms for using and benefitting from Uyghur forced labor.

The Canadian Ombudsperson for Responsible Enterprise (CORE) detailed that NIKE Canada Corp. has relationships or supply chain links with Haoyuanpeng Clothing Manufacturing Co. Ltd., Texhong Textile Group, Qingdao Taekwang Shoes Co. Ltd., Qingdao Jifa Group, Esquel Textile Co. Ltd., and Huafu Fashion Co. Ltd. All these firms are alleged of having links with Uyghur forced labour in Xinjiang. According to the report, Nike Canada has not taken any steps to ensure that the forced labour is not implicated in their supply chain.

Nike, in its response to the report, has stated that it does source items from Xinjiang and has ensured with its suppliers that they are not using material from the region. It also referred to the Nike Code of Conduct and Code Leadership Standards and mentioned that it prohibits forced labour. The brand also told that it conducts regular checking to make sure that no such things are taking place.