Burberry is the first luxury brand to get dragged into the Chinese backlash over Western accusations of abuses in Xinjiang.
The UK firm has seen its hallmark tartan design scrubbed from a popular computer game.
It's also lost a brand ambassador.
Award-winning Chinese actress Zhou Dongyu terminated her contract with the firm.
Her agency said that was over Burberry's failure to make clear its stance on cotton from Xinjiang.
Activists and U.N. rights experts have accused China of abusing the Uighur people in the province.
Allegations include mass detainment in special camps, torture, forced labour and sterilisations.
The EU, U.S., UK and Canada have all imposed sanctions over the alleged abuses.
Some brands, including Nike, Adidas and H&M had in the past expressed concern over conditions in the region, and said they did not source cotton or other products there.
Those comments have now resurfaced, and drawn Chinese ire.
On Friday (March 26) China's clothing and textile industry body called on foreign brands to cease what it called 'wrong behaviour', including the exclusion of Xinjiang cotton.