Shein, the Chinese giant that also sells a wide range of home decor, has faced severe criticism from MPs, who accused the company of 'wilful ignorance' over potential forced labour within its supply chain. During a hearing before the Business and Trade Committee, parliamentarians expressed dismay at Shein's failure to address questions regarding its sourcing of cotton, particularly from the Xinjiang region of China, a territory linked to allegations of human rights abuses.
Photo: Dreamstime.
Committee Chairman Liam Byrne expressed his frustration at the company's lack of clarity, stating that MPs were 'horrified by the lack of evidence' provided by Yinan Zhu, Shein's general counsel for Europe, the Middle East, and Africa. Byrne criticised the company for what he described as a 'disrespectful' approach to the hearing, adding, 'You've given us almost zero confidence in the integrity of your supply chains. You can't even tell us what your products are made from, and your reluctance to answer basic questions has bordered on contempt.'
The hearing, which forms part of Shein's efforts to gain approval for a £50 billion listing on the London Stock Exchange, may pose a significant setback to the company. Approval from the UK's Financial Conduct Authority is still pending, and this lack of transparency could complicate matters.
Liberal Democrat MP Charlie Maynard also criticised the company, expressing disbelief at its refusal to confirm whether its products contain cotton sourced from China. Addressing Zhu, he said, 'Frankly, I don't feel you're respecting the committee at all. You can't state whether Shein is selling any products in China made of cotton. That is completely ridiculous and dismisses the point of why we're here today. Do you understand how simple the questions we're asking you are?'
Zhu, who faced pointed questioning throughout the session, maintained that she was responding to the committee 'to the best of her ability.' She stated that more detailed answers would require written follow-ups. Zhu also claimed that Shein complies with regulations in all countries where it operates and emphasised the company's commitment to ethical practices through supplier codes of conduct and robust monitoring systems.
The session comes amid growing scrutiny of the fashion industry's supply chains, particularly over allegations of forced labour in Xinjiang, a region associated with the production of cotton under questionable conditions. Shein's evasiveness has drawn sharp criticism as MPs demand greater accountability from a retailer that generates significant revenue in the UK.
Shein's reputation and ambitions for public listing are likely to face further challenges unless the company provides comprehensive evidence to address these concerns. This issue underscores the increasing pressure on global corporations to ensure transparency and ethical practices in their operations.
Source: www.retailgazette.co.uk