🛒 Shein under parliamentary fire
Shein’s general counsel, Yinan Zhu, faced tough questions from UK MPs about the company's use of Chinese cotton. Zhu refused to confirm if Shein uses cotton sourced from Xinjiang, a region linked to forced labor allegations. MPs expressed frustration, labeling Zhu's testimony as "wilful ignorance." The company, founded in China and now based in Singapore, ships to 150 countries and generates billions annually but is under fire for alleged poor labor practices.
📉 Forced labor allegations hit hard
The Xinjiang region of China produces significant global cotton, but reports link its industry to forced labor. A 2020 BBC investigation estimated 500,000 Uighurs were forced into cotton picking. Major brands like H&M and Adidas have cut ties with Xinjiang cotton, while Shein has not clarified its position. MPs accused Shein of avoiding transparency as concerns over human rights violations grow louder.
🔍 Lack of transparency angers MPs
MP Charlie Maynard criticized Zhu's inability to confirm basic supply chain details, calling it "ridiculous." Liam Byrne, chair of the Business and Trade committee, said Zhu’s responses showed "contempt" for the process. While Shein claims to audit suppliers, MPs were unimpressed by its vague assurances. Rival retailer Temu stated it explicitly bans products from Xinjiang, drawing a contrast to Shein’s opaque stance.
📊 Shein eyes London IPO amid scrutiny
The hearing followed reports of Shein’s initial filings for a London Stock Exchange listing, potentially valuing the company at $62.3B. MPs questioned how Shein could seek UK investments without transparency on labor practices. Zhu deflected questions on the IPO, sparking further backlash. As Shein scales globally, scrutiny over its environmental and ethical practices continues to intensify.
Should Shein clarify its supply chain practices to gain trust?
