Nike
Now playing
00:38
Nike cancels shoe featuring 18th century American flag
Now playing
04:56
How these startups are tackling high drug costs in the US
WASHINGTON, DC - MARCH 09: Elon Musk, founder and chief engineer of SpaceX speaks at the 2020 Satellite Conference and Exhibition March 9, 2020 in Washington, DC. Musk answered a range of questions relating to SpaceX projects during his appearance at the conference. (Photo by Win McNamee/Getty Images)
Win McNamee/Getty Images
WASHINGTON, DC - MARCH 09: Elon Musk, founder and chief engineer of SpaceX speaks at the 2020 Satellite Conference and Exhibition March 9, 2020 in Washington, DC. Musk answered a range of questions relating to SpaceX projects during his appearance at the conference. (Photo by Win McNamee/Getty Images)
Now playing
04:19
Bitcoin and crypto's 'Elon Musk problem'
Now playing
02:29
'Outrageous' used car prices amid highest inflation in 13 years
jeff bezos blue origin space launch cooper intv sot vpx_00021804.png
jeff bezos blue origin space launch cooper intv sot vpx_00021804.png
Now playing
03:05
Jeff Bezos reveals most surprising part of space mission
CNN
Now playing
03:05
These moms explain how child tax credit checks will help them
CNN/John General/Atom Smasher
Now playing
04:04
Here's everything you need to know about ransomware
Now playing
04:04
Subway CEO on menu changes: The one thing we did not touch is our tuna
Now playing
02:40
Gretchen Carlson tells Anderson about the bipartisan bill she's backing to help workers
Rachael Flores
Now playing
02:22
Employees go viral after resigning via Burger King sign
Virgin Galactic
Now playing
02:05
Richard Branson lands safely after rocketing to outer space
CNN/Shutterstock
Now playing
02:20
Prices are going up on almost everything. Here's why
A car drives by a Speedway gas station next to the Shell refinery on March 03, 2021 in Martinez, California. Gas prices have increased across the United States to a national average of $2.72 per gallon, an increase of 30 cents from one month ago. Gas in California has an average price of $3.68 per gallon, the highest in the nation.  (Photo by Justin Sullivan/Getty Images)
Justin Sullivan/Getty Images
A car drives by a Speedway gas station next to the Shell refinery on March 03, 2021 in Martinez, California. Gas prices have increased across the United States to a national average of $2.72 per gallon, an increase of 30 cents from one month ago. Gas in California has an average price of $3.68 per gallon, the highest in the nation. (Photo by Justin Sullivan/Getty Images)
Now playing
04:01
Gas prices are high. Here's why
Now playing
02:46
The US needs construction workers
BetterUp CEO Alexi Robichaux workplace mental health orig_00023111.png
BetterUp CEO Alexi Robichaux workplace mental health orig_00023111.png
Now playing
03:06
This CEO says leaders need to focus on mental health to boost productivity at work
A driver uses the Didi Chuxing ride-hailing app on his smartphone while driving along the street in Beijing on July 2, 2021. (Photo by Jade GAO / AFP) (Photo by JADE GAO/AFP via Getty Images)
Jade Gao/AFP/Getty Images
A driver uses the Didi Chuxing ride-hailing app on his smartphone while driving along the street in Beijing on July 2, 2021. (Photo by Jade GAO / AFP) (Photo by JADE GAO/AFP via Getty Images)
Now playing
02:13
Didi shares plummet after China bans it from app stores
New York CNN Business —  

Just 10 days after lambasting Nike for pulling its “Betsy Ross” American Flag sneaker, Arizona Governor Doug Ducey back-pedaled on his defiant stance against the apparel company.

In a tweet on Thursday, the Republican governor welcomed Nike’s plans for building a new $184 million manufacturing facility in Goodyear, Arizona, saying the company will bring more than 500 jobs to the state.

If you’re feeling whiplash, that’s because last week, Ducey ordered the Arizona Commerce Authority to withdraw all financial incentive dollars to Nike from the state to build a factory in the Phoenix suburb.

Ducey condemned Nike after the company said it would not release the Air Max 1 Quick Strike Fourth of July, “based on concerns that it could unintentionally offend and detract from the nation’s patriotic holiday.”

“Arizona’s economy is doing just fine without Nike. We don’t need to suck up to companies that consciously denigrate our nation’s history,” Ducey tweeted on July 2.

His office did not immediately respond to a request for comment. The status of the incentives remains unclear.

Nike’s (NKE) decision reportedly came after NFL star and Nike endorser Colin Kaepernick complained about the 18th century flag’s appearance on the sneaker. He said he and others found the “Betsy Ross” flag’s symbolism offensive because of its ties to the country’s era of slavery.

Last week, Nike defended its actions and said it would proceed with its factory. It reiterated its stance on Goodyear this week.

“The expansion of Air MI in Arizona helps us keep pace with the growing demand for Nike Air and also greatly increases the size of our US manufacturing footprint. We want to thank the State and City of Goodyear for their partnership as we continue to accelerate our growth,” said Eric Sprunk, Nike’s chief operating officer, in a statement.

Nike entered into an agreement with the city of Goodyear in May.

The agreement included waiving $1 million in permit and review fees for Nike to build the manufacturing facility. The city of Goodyear also agreed it would reimburse Nike up to $1 million for the total 505 jobs company it ensured the plant would create. It is still unclear how much money from the incentive plan is under state jurisdiction.

– CNN Business’ Jordan Valinsky contributed to this report