Shein, the fast-fashion giant that skyrocketed to global prominence, is under fire after its senior lawyer repeatedly declined to confirm whether the brand uses Chinese cotton in its products. During a parliamentary hearing, Yinan Zhu, Shein’s general counsel, was grilled over potential ties to cotton sourced from Xinjiang, a region linked to allegations of forced labor and human rights abuses. The lawyer’s refusal to answer drew sharp criticism from MPs, with one branding her evidence as “ridiculous” and “wilful ignorance.”
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Scrutiny Over Xinjiang Cotton
Xinjiang, located in northwest China, has been at the center of international controversy. Allegations of forced labor involving the Uighur Muslim minority have led major fashion brands like H&M, Nike, and Adidas to cut ties with cotton suppliers in the region. Research from 2020 indicated that up to 500,000 people were being forced to pick cotton in Xinjiang, though Beijing denies these accusations.
As global pressure mounts, Shein has remained tight-lipped about its supply chain practices. During the hearing, MPs from the Business and Trade Committee questioned Ms. Zhu on whether Shein’s products contained cotton from Xinjiang. However, she repeatedly dodged direct answers, stating only that the company’s suppliers were required to meet “robust standards” and undergo audits by third-party agencies.
MPs Call Out Shein’s ‘Wilful Ignorance’
The lack of clarity infuriated MPs, who accused Ms. Zhu of withholding critical information. Liberal Democrat MP Charlie Maynard criticized her testimony, saying, “I am on your website and I can see about 20 products which are all cotton… yet you can’t state whether Shein is selling any products made of cotton sourced from China? I find that completely ridiculous.”
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He went on to accuse the lawyer of “wilful ignorance,” pointing out her avoidance of mentioning Xinjiang entirely. Liam Byrne, chair of the committee, echoed these frustrations, describing the hearing as “horrifying” and Ms. Zhu’s reluctance to provide answers as bordering on “contempt of the committee.”
Shein’s Supply Chain Practices Under Fire
Ms. Zhu emphasized that Shein does not own factories but works with a vast network of suppliers, mostly in China, as well as Turkey and Brazil. She claimed the company complies with local laws and regulations wherever it operates. However, when asked if Shein specifically prohibits suppliers from sourcing cotton from Xinjiang, Ms. Zhu requested permission to provide written answers at a later date.
In stark contrast, Temu, another fast-fashion retailer, assured the committee that it explicitly bans sellers from the Xinjiang region. Stephen Heary, Temu’s senior legal counsel, stated, “Any issues of labor practices are something that we take fundamentally very seriously,” offering some reassurance about their supply chain policies.
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Environmental and Ethical Concerns
Shein’s meteoric rise since its founding in 2008 has made it one of the largest fast-fashion retailers globally, shipping to over 150 countries. However, the company’s rapid growth has also drawn significant criticism. Shein has faced allegations of labor exploitation, environmental harm, and questionable supply chain transparency.
While Ms. Zhu reiterated that the company is committed to ethical practices, the hearing did little to alleviate concerns. MPs expressed doubts about Shein’s ability to ensure compliance with its stated standards, particularly given its vast and decentralized supplier network.
Potential UK Stock Market Listing
Adding to the controversy is Shein’s plan to list on the London Stock Exchange, a move that could value the company at £50 billion. When questioned about the potential listing, Ms. Zhu again declined to provide details, further frustrating the committee. Chair Liam Byrne remarked, “For a company selling £1 billion worth of goods, the lack of evidence provided here is shocking.”
Shein’s Public Image Takes a Hit
The parliamentary hearing has cast a shadow over Shein’s reputation. The refusal to address basic questions about its supply chain, combined with ongoing allegations of labor abuses, highlights the challenges the company faces in maintaining transparency. Critics argue that without clear answers, Shein risks alienating customers and stakeholders in key markets like the UK.
What’s Next for Shein?
As global scrutiny intensifies, Shein may face mounting pressure to address concerns about its supply chain practices and potential ties to Xinjiang. The parliamentary backlash underscores the growing demand for accountability in the fashion industry, particularly from brands that operate on a massive scale.
For Shein, the stakes are high. With a potential UK stock market listing on the horizon, the company must navigate public and governmental scrutiny carefully to secure its position as a global leader in fast fashion. Whether it can do so while upholding ethical and environmental standards remains to be seen.
