LONDON — Shein, one of the world’s largest fast-fashion retailers, has remained tight-lipped about the use of Xinjiang cotton and alleged forced labor and child labor in its supply chain following a bruising parliamentary hearing earlier this week.
During a hearing with the U.K. Parliament’s Business and Trade Committee, Shein refused to answer a series of tough questions about its sourcing and labor practices, igniting the anger of parliamentarians.
Shein was one of a number of companies, including Tesco, McDonald’s and the Alibaba-backed fast-fashion giant Temu, who were asked to update members of parliament about how they treat their workers.
But all eyes were on Shein, which is hoping to list on the London Stock Exchange later this year pending regulatory approval.
Yinan Zhu, Shein’s general counsel for Europe, the Middle East and Africa, dodged a string of sensitive questions during the hearing, prompting one committee member, the Lib Dem MP Charlie Maynard, to accuse her of “willful ignorance” and describe her testimony as “very unhelpful.”
Asked repeatedly if Shein uses cotton supplied from China, Zhu said: “For detailed operational information and other aspects, I am not able to assist. I will have to write back to the committee afterwards.”
She added: “Obviously, we comply with laws and regulations everywhere we do business. And we have supplier codes of conduct, we have robust systems and procedures in place, and policies in place. We also have very strong enforcement measures in place to ensure we adhere to these standards that are expected in our supply chain.”
WWD has reached out to Shein principals, but they did not respond at press time.
Although Zhu’s vague answers may have angered MPs, they were a normal response from a Chinese national. She would have been encouraged not to discuss geopolitical issues, such as the use of Xinjiang cotton, and alleged forced labor in the region, by the government.
Xinjiang cotton has been at the center of a geopolitical battle between China and the West since the U.S. Customs and Border Protection issued a ban on goods sourced from the region in 2021.
Beijing has categorically denied any abuses in the region and has punished those who issued public comments regarding alleged forced labor in Xinjiang.
While Shein is headquartered in Singapore, the majority of its operations sit within China, and for the company to run smoothly, it’s unlikely that Shein would ever make any public comments that would go against China’s official stance on the issues.
Over the years, Shein has been accused of skirting U.S. tariffs, employing forced laborers in China, illegally using Xinjiang cotton in its products, and copying others’ designs, all of which it denies.
In its bid to seek a public listing in London, the company has been trying to show that it is an ethical operator.
Donald Tang, Shein’s executive chairman, told WWD last year that Shein wants to comply with international laws and become a more transparent company. Being a publicly traded company, he said, is the way to foster that.
Shein had originally tried to list on the New York Stock Exchange, but its bid was blocked by U.S. lawmakers in 2023. It later pivoted to London, where its request still needs to be approved by U.K. and Chinese regulators.
Seeking to improve its public image and shine a light on all the positive work it has been doing, Shein unveiled plans to pump 250 million euros into European fashion’s circular economy and back the sector’s budding entrepreneurs, artists, and artisans.
Shein said the fund will build on its existing programs to advance research and development and innovation in circularity and to support start-ups and businesses throughout Europe and the U.K., which are developing next-generation technologies and solutions.
The money has been earmarked for early-stage start-ups working on textile-to-textile recycled materials innovation and related areas, and for “offtake agreements” (contracts to buy future output) or other commercial partnerships with more mature start-ups.
