Liu Wen, China’s highest-paid supermodel and Coach ambassador, may have to pay a multi-million compensation for breaking her contract with the American luxury fashion brand over the status of Hong Kong.
The Victoria’s Secret angel may need to pay Coach 160 million Yuan ($22.7 million) for her move, the Daily Mail reports, citing Chinese news outlet 163.com.
This sum is thought to include her annual $1.5 million salary as the brand’s China ambassador, as well as compensation for breach of contract. It is claimed, however, that some $14 million in promised bonuses could be taken out of the potential penalty.
Both Coach and Liu Wen have yet to comment on the report.
The 31-year-old supermodel halted cooperation with the brand after it drew massive criticism in China for t-shirts listing Hong Kong and Taiwan as separate countries rather than parts of China.
In announcing the break-up with Coach, her studio said that “China’s territorial integrity and sovereignty are sacred and inviolable at all times,” whereas the model apologised for her choice of brand.
Coach also issued an apology, saying that the t-shirts were from a 2018 collection and that they were pulled globally last year. “We are fully aware of the severity of this error and deeply regret it,” the company said in a statement.
— Coach (@Coach) August 12, 2019
However, Coach wasn’t the only company that found itself in trouble for mislabelling Chinese-claimed lands.
Western fashion brands Versace, Givenchy, and Calvin Klein, along with Japanese sportswear maker Asics have all issued apologies for identifying Hong Kong and Macao as independent entities, either on their products or websites, following mass online campaigns on Chinese social media. Neither of them admitted to having made a political statement.
The Company apologizes for the design of its product and a recall of the t-shirt has been implemented in July. The brand accepts accountability and is exploring actions to improve how we operate day-to-day to become more conscientious and aware. pic.twitter.com/5K8u3c4Dbm
— VERSACE (@Versace) August 11, 2019
This controversy arose at a sensitive moment for both Beijing and Hong Kong, a semi-autonomous city under Chinese rule which has been rocked by anti-government protests for over two months.
The mass rallies started as a show of protest against the proposed bill that would allow Hong Kong authorities the ability to extradite criminal suspects to mainland China.
The Carrie Lam government suspended the bill in June, caving in to pressure from protesters who claimed that with the adoption of the bill, Beijing would encroach on their independence.
The protests nonetheless continued, evolving into a wider movement for political reforms, including direct elections for the city’s top office.
The rallies, which saw thousands of people occupy roads and bring the city’s airport to a halt, have been marred by violent clashes with police. Over 500 people have been arrested so far.
Incumbent Hong Kong leader Carrie Lam has condemned the violence and said the city is on the verge of a “very dangerous situation”.
While several Western nations have endorsed the protesters or voiced concerns over the situation in the city, Beijing discerned “signs of terrorism” in the demonstrations, accused the United States of engaging in “anti-China criminal activities” there, and warned foreign countries against meddling in the crisis.
