Lawyers representing the campaign group Stop Uyghur Genocide (SUG) have presented a dossier of evidence to Shein’s legal team, accusing the fashion giant of being complicit in supply chain abuses linked to forced labour in the Uyghur region of China.
The dossier has been handed over just days before Shein’s European legal advisor, Yinan Zhu, is set to appear before the UK’s Business and Trade Select Committee on January 7. The committee is tasked with reviewing the Employment Rights Bill, which focuses on strengthening protections against poor labour standards, including forced labour.
According to SUG, the evidence provided to the Financial Conduct Authority (FCA) last summer and now to Shein’s legal team suggests the company’s supply chains are “highly likely” tainted by forced labour, particularly in the Xinjiang Uyghur Autonomous Region (XUAR). The region is infamous for its controversial cotton production practices. The campaign group insists these allegations should disqualify Shein from listing on the London Stock Exchange (LSE).
Rahima Mahmut, Executive Director of SUG, urged immediate and thorough investigation into Shein’s labour practices. She stated, “The select committee must properly scrutinise labour practices, and the FCA must take a firm stand and block Shein’s listing on the London Stock Exchange. We look to our institutions to ensure that any companies profiting from oppression are held to account.”
The dossier alleges identifiable links between cotton sourced from XUAR and forced labour, raising concerns that if substantiated, Shein’s activities could potentially violate the UK’s Modern Slavery Act. Such violations might lead to questions about the legality of the company’s profits under proceeds of crime laws.
These allegations echo recent developments in the United States, where the Securities and Exchange Commission (SEC) declined to recommend Shein’s listing on American exchanges due to similar concerns over forced labour in its supply chains.
Leigh Day solicitor Ricardo Gama, representing SUG, emphasised the importance of ensuring accountability. “It’s crucial that companies shown to profit from criminal practices, particularly forced labour, are not allowed to raise capital in markets like London,” Gama said. “This includes the FCA, as well as MPs through parliamentary select committees.”
With the parliamentary hearing on January 7, chaired by Liam Byrne, approaching, Shein is under pressure to address these serious allegations. SUG continues to advocate for the FCA to block Shein’s listing on the LSE, citing its belief that the company’s supply chains are implicated in modern slavery, potentially constituting proceeds of crime offences.
