Fast fashion retailer Shein's general counsel, Yinan Zhu, dodged questions about the sourcing of cotton from Xinjiang, a region in China implicated in alleged forced labor practices. During a Business and Trade Committee hearing, Zhu refused to confirm whether Shein products contain Xinjiang cotton, citing a need to respond in writing. This lack of transparency prompted accusations of a lack of confidence in the company's supply chains and a potential breach of the committee's authority.
The committee's chairman, Liam Byrne, criticized Shein's response, stating that the company's reluctance to answer fundamental questions about its supply chain practices amounts to a form of contempt. He highlighted the near-total lack of specific information on cotton origin, worker conditions, and supplier compliance, expressing significant concern over the integrity of Shein's operations.
Zhu's repeated refusals to answer specific questions extended beyond the Xinjiang cotton issue. She also declined to discuss general forced labor allegations in the region, stating that it was inappropriate to engage in a "geopolitical debate." This further fueled the committee's suspicion, with Liberal Democrat MP Charlie Maynard accusing Zhu of "wilful ignorance."
Shein's recent history of labor rights violations further complicates the situation. The company acknowledged factory working hour breaches in 2022 and, according to a BBC report, discovered two instances of child labor in its supply chain last year. These previous incidents underscore the committee's concern regarding Shein's commitment to ethical labor practices.
Shein's upcoming London Stock Exchange listing is now potentially jeopardized by this lack of transparency and the negative publicity generated by the committee hearing. The company's ability to secure regulatory approval from both British and Chinese authorities may be significantly impacted.
