Shein faces forced labour allegations amid £50bn stock listing
Campaigners urge blocking Shein's £50bn stock listing over forced labour claims
Chinese fashion retailer Shein faces allegations of using forced labour from Uyghurs in its clothing production. Campaigners have submitted evidence to the City watchdog, arguing that the retailer should be prevented from listing shares on the London Stock Exchange.
The Uyghurs, the largest ethnic minority in Xinjiang, China, have reportedly been subjected to labour camps by Chinese authorities, alongside other Muslim minority groups. These camps have been linked to reports of torture, sexual violence, and sterilisation, which Beijing denies.
Stop Uyghur Genocide (SUG) claims Shein’s suppliers likely use materials from these camps. Led by Rahima Mahmut, a Uyghur human rights campaigner, SUG argues that forced labour use breaches the Modern Slavery Act. Mahmut urges the Financial Conduct Authority and stock exchange to maintain their standards and block Shein’s £50 billion stock market listing.
#Shein has admitted it found cases of child labor.
With everything we know—from #UyghurForcedLabor to health risks and now child labor—if Shein is still allowed to be listed in #London, what does that say about our values and standards?https://t.co/gikwkL5UmD
— Rushan Abbas (@RushanAbbas) August 23, 2024
The SUG dossier highlights ‘clear, identifiable links’ between Xinjiang cotton production and forced labour, referencing a 2022 Bloomberg investigation that found Shein’s clothes contained cotton from this region. High Court rulings indicate that all cotton from Xinjiang is ‘tainted by forced labour,’ according to SUG.
Shein has previously stated it maintains a ‘zero tolerance policy for forced labour’ and respects human rights, implementing rigorous checks on thousands of suppliers. The company requires manufacturers to source cotton from ‘approved regions.’
Last week, Shein acknowledged an audit found two instances of child labour in its supply chain, leading to supplier suspensions. Shein promised to terminate contracts if future cases are discovered.
SUG lawyer Ricardo Gama emphasised the need to prevent UK capital markets from funding businesses linked to Uyghur forced labour. He stressed the importance of upholding laws against modern slavery.
Michael Polak from Lawyers for Uyghur Rights warned that allowing Shein’s listing could lead British consumers to unknowingly support atrocities by the Chinese Communist Party. Founded in 2012, Shein’s profits have surged due to budget-conscious shoppers in 150 countries.
What Other Media Are Saying
- VOA News reports that Chinese online fashion retailer Shein faces a boycott campaign amid allegations of using Uyghur forced labor in China, with human rights organizations calling for Muslim consumers to avoid the brand.(read more)
- WPDE explores the reality of forced labor in Xinjiang, highlighting Shein’s alleged use of Uyghur labor and the Uyghur Forced Labor Prevention Act’s challenges in addressing these practices.(read more)
- BBC reports that US lawmakers demand an investigation into Shein, a Chinese fashion brand, over allegations of Uyghur forced labour in its supply chain.(read more)
Frequently Asked Questions
Here are some common questions asked about this news
Is Shein accused of using forced labor?
Yes, Shein has been accused of using forced labor from Uyghurs in Xinjiang.
What has Shein said about the forced labor accusations?
Shein claims to have a ‘zero tolerance policy for forced labour’ and conducts rigorous supplier checks.
What is the Modern Slavery Act in relation to Shein?
The Modern Slavery Act prohibits the use of forced labor, which SUG claims Shein’s suppliers violate.
Has Shein found any other labor violations recently?
Yes, Shein admitted to discovering two cases of child labor in its supply chain.
Why are campaigners urging a halt to Shein’s stock market listing?
Campaigners argue Shein’s links to forced labor should bar its £50 billion listing on the London Stock Exchange.
