Shein dodges scrutiny on Chinese cotton supply in UK parliamentary hearing

In the UK, concerns have arisen around the fashion retailer Shein following its recent parliamentary hearing where it faced multiple questions regarding its supply chain practices. The meeting, held by the Business and Trade Committee, saw Shein's general counsel fail to provide clear answers on whether the company sells cotton sourced from China, specifically from the Xinjiang region where allegations of forced labor persist. This refusal prompted lawmakers to express outrage, labeling Shein's responses as 'ridiculous' and 'disrespectful'. Shein, which was originally founded in China and is currently headquartered in Singapore, is preparing for a significant public listing on the London Stock Exchange, potentially valued at £50 billion. In light of this potential listing, MPs are demanding greater transparency and accountability from the company regarding its supply sources, particularly in relation to ethical standards around labor practices. During the committee hearing, Yinan Zhu, the lawyer representing Shein, repeatedly evaded direct inquiries surrounding the origins of the cotton used in its products. Lawmakers were particularly fixated on cotton sourced from Xinjiang, as various reports indicate that about half a million individuals are forced to pick cotton in that region, primarily targeting Uyghur Muslims. Despite Shein's assertions of adhering to local regulations and conducting audits through external firms, MPs remained skeptical of the integrity and transparency of its supply chains. Their lack of confidence was fueled by Shein's reluctance to answer basic questions about its sourcing process, leading to a dialogue that Byrne characterized as bordering on contempt. Byrne's written correspondence with the London Stock Exchange emphasized the committee's concerns about ensuring companies, like Shein, maintain safeguards against forced labor in their operations. The growing scrutiny of Shein’s practices aligns with wider trends in the fashion industry, where other brands have faced backlash for their supply chains linked to human rights abuses, prompting significant policy changes. As the discussion around ethical labor practices continues to gain momentum, companies will likely face increasing pressure to validate their sourcing methods and demonstrate their commitment to ethical practices.