LONDON — During a parliamentary inquiry on Tuesday, a representative from Shein faced significant scrutiny but dodged inquiries about whether the brand sells apparel made from cotton sourced in China. This refusal to provide clear answers frustrated lawmakers looking to investigate the retailer’s labor practices and the troubling allegations of forced labor within its supply chain.
Executives from both Shein and competitor Temu were interrogated about their labor practices and sourcing methods by the Business and Trade Committee in Parliament. This hearing took place against the backdrop of reports alleging that Shein, which started in China but has since relocated its headquarters to Singapore, is gearing up for a £50 billion ($62 billion) public offering on the London Stock Exchange within the next few months.
These two international retailers have gained substantial traction globally by offering predominantly Chinese-manufactured clothing and goods at low prices. However, they have faced backlash due to allegations regarding the presence of forced labor within their supply chains, especially concerning materials sourced from Xinjiang, a region in far-western China. Human rights organizations have reported serious abuses inflicted by the Chinese government on the Uyghur ethnic group and other Muslim minorities in the area.
During the session, Yinan Zhu, Shein’s general counsel based in London, repeatedly evaded questions about whether Xinjiang cotton, or cotton from China in general, is used in their products. She also refrained from confirming if the company’s code of conduct forbids suppliers from sourcing cotton from Xinjiang or expressing any concerns regarding potential forced labor in that region.
Zhu articulated, “I don’t think it’s our place to comment on … having a geopolitical debate.” She asserted that Shein adheres to local laws in all operational territories, emphasizing compliance with UK regulations, and stated that thousands of audits conducted by accredited external organizations are performed to verify the integrity of their supply chains.
Committee Chair Liam Byrne expressed deep concern and disappointment over the information black hole created by Zhu’s responses, stating that her lack of transparency provided lawmakers with “zero confidence” in Shein’s supply chain integrity. Byrne remarked that the unwillingness to answer fundamental queries bordered on disrespect.
Since its establishment in 2012 in China, Shein has rapidly ascended as a dominant player in the fast-fashion sector, exporting goods to 150 nations. In October, Shein announced that it had doubled profits in the UK for 2023, reporting nearly a 40% increase in sales to £1.5 billion.
The anticipated London listing has sparked alarms among politicians and independent watchdogs, including the UK’s anti-slavery commissioner, who raise ethical and governance concerns. An earlier attempt by Shein to go public in the U.S. was thwarted by lawmakers who demanded proof that the company does not engage in forced labor practices involving China’s Uyghur population.
Meanwhile, during the same hearing, Stephen Heary, a senior attorney for Temu, acknowledged that his company takes forced labor seriously, noting that it prohibits sellers from the Xinjiang area from listing goods on its global marketplace. However, a U.S. Congressional report released in 2023 labeled Temu’s supply chains as having an “extremely high risk” of containing Chinese forced labor, pointing out that Temu does not conduct audits or maintain a compliance system to ensure adherence to U.S. law regarding forced labor.
Temu, which launched in 2022 and is a subsidiary of the Chinese e-commerce firm PDD Holdings, has become a brand of choice for many consumers, alongside Shein, due to its vast variety of low-cost products ranging from clothing to home goods that are shipped from China.
