Lawmakers Call for Investigations as Shein Dodges Interrogations

MPs Call for Checks as Shein Dodges Questions

MPs are urging for checks as Shein refuses to answer questions regarding its supply chain. The London Stock Exchange (LSE) has been questioned about its vetting processes for firms after the fast-fashion retailer avoided providing essential information.

Concerns Over Supply Chain Authenticity

Liam Byrne, chair of the Business and Trade Committee, has reached out to Dame Julia Hoggett, questioning the authenticity of statements made by companies looking to list. The focus is on ensuring safeguards against forced labor in products. Shein's refusal to disclose details about its cotton sources from China has raised red flags.

Shein's Evasive Responses

During a recent appearance before the Commons' Business and Trade Committee, Shein's lawyer, Yinan Zhu, declined to confirm if the company used cotton from Xinjiang, a region linked to forced labor allegations. Despite claims of compliance with laws, concerns about supply chain integrity persist.

Allegations and Industry Response

China's treatment of the Uighur minority has sparked global outrage, with reports of forced labor in Xinjiang. Major fashion brands have distanced themselves from Xinjiang cotton, triggering backlash. Shein's potential UK listing has brought its supply chain practices under scrutiny, prompting calls for transparency.

Call for Oversight

Byrne, in his letter to the LSE and the Financial Conduct Authority, seeks reassurance on checks to verify companies' disclosures and mitigate legal risks. The fashion industry's accountability for ethical sourcing practices remains a pressing issue, with stakeholders demanding greater transparency.