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Wednesday, January 8, 2025

Shein Faces Heat in UK Parliament Over Forced Labor Allegations

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A Shein lawyer who appeared at a British parliamentary hearing on Tuesday sidestepped questions about whether the fast-fashion brand sells products containing cotton sourced from China, particularly Xinjiang, causing frustration among lawmakers. 

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The committee, which focuses on business and trade, grilled executives from Shein and its competitor Temu about their labor practices and sourcing methods amid growing concerns over forced labor in their supply chains.

A Major Listing on the London Stock Exchange 

This session comes as Shein, which originated in China and is now based in Singapore, plans a major £50 billion ($62 billion) listing on the London Stock Exchange in the first quarter of 2025. The companies, both gaining traction globally for offering inexpensive, mostly Chinese-made goods, face significant scrutiny over human rights violations, particularly allegations linking their supply chains to forced labor in Xinjiang, a region in western China where rights groups report systemic abuse of Uyghur Muslims and other minorities.

Trouble Mounts for Shein

Yinan Zhu, Shein’s general counsel in London, repeatedly avoided direct questions about whether cotton from Xinjiang or other parts of China is used in their products. She also declined to confirm whether Shein’s supplier code of conduct prohibits the use of Xinjiang cotton or if the company acknowledges concerns about forced labor in the region.

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“We are not here to engage in geopolitical debates,” Zhu stated. “Our operations comply with the laws of the countries where we are based, including the UK’s regulations.” She further emphasized that Shein conducts thousands of audits through independent external firms to ensure compliance, although the specifics of those audits were not clarified.

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