The Chinese fast fashion powerhouse Shein left members of Parliament “shocked” after dodging inquiries about the potential existence of forced labor within its supply chain.
During an intense session of the business and trade committee, MPs expressed that they held “nearly zero confidence” in the integrity of Shein’s supply chains, accusing the company of “deliberate ignorance” by not clarifying whether it sources cotton from China.
This backlash jeopardizes the company’s aspirations for a £50 billion listing on the London Stock Exchange, an event that has been hailed as one of the year’s most significant deals.
Liam Byrne, chair of the committee, reproached Shein following a “disrespectful” performance by Yinan Zhu, the company’s general counsel for Europe, the Middle East, and Africa.
Byrne stated: “For a business that sells £1 billion worth of products to UK consumers and is looking to go public on the London Stock Exchange, the committee has been left quite horrified by the absence of evidence you’ve presented today.
“You’ve provided us with almost no assurance regarding the integrity of your supply chains. You can’t even disclose what your products are made from, nor can you elaborate on the conditions under which your workers operate, and your reluctance to respond to fundamental questions has truly bordered on contempt for the committee.”
The appearance of Yinan Zhu, Shein’s general counsel for Europe, Middle East, and Africa, before the business and trade committee was characterized as ‘disrespectful’ – House of Commons/UK Parliament/PA
Liberal Democrat MP Charlie Maynard also engaged in the discourse after Ms. Zhu refrained from confirming whether the company sources its cotton from China.
He remarked: “Honestly, I don’t feel you are showing any respect towards the committee at all.
“You tell our chair that you cannot specify whether Shein sells any products in China made from cotton. I find that utterly absurd. It is incredibly unhelpful and disrespectful for you to be conducting yourself in this manner. It reeks of deliberate ignorance.”
He further asked: “Do you believe you are being disrespectful by being so openly devoid of responses? We have posed very straightforward questions, yet you are not providing direct answers.
“And that, in my view, undermines the very reason we are here today. Do you grasp how simple the inquiries we are making are? Do any of your products contain cotton sourced from China? That is not a complex question.”
In response, Ms. Zhu asserted that she was answering their queries to the best of her ability.
Allegations of Misconduct in the Company’s Supply Chains
It was revealed during the hearing that legal representatives for Stop Uyghur Genocide (SUG) had recently presented Ms. Zhu with a dossier of allegations concerning abuses within the company’s supply chain.
This follows significant concerns regarding its cotton supply and the possibility that it originates from Xinjiang, where there are claims of forced labor involving Uyghur Muslims.
Inside a factory belonging to a Shein supplier in Guangzhou, China. The brand has faced criticism for the allegedly subpar working conditions in its factories – Jade Gao/AFP
When inquired about the report, Ms. Zhu stated that the company, recognized for its ultra-low prices, adheres to the laws and regulations in all the regions it operates.
Eleanor Lyons, the Independent Anti-Slavery Commissioner for the UK, later informed the committee that she has already expressed concerns about Shein to the Financial Conduct Authority (FCA) in relation to its potential listing.
She commented: “I believe they are not being open about what is happening in their supply chains.”
This hearing provided MPs with their first chance to thoroughly question the company as it readies for its possible public launch in London.
The company had initially explored a listing in New York but reconsidered after receiving backlash from US lawmakers.
Shein’s popularity has soared in recent years, with its UK sales surpassing £1.55 billion for the first time last year, allowing it to overtake its competitor Boohoo.
