On Thursday, January 9th, a senior UK parliamentarian wrote a letter to the London Stock Exchange (LSE) expressing “deep concern” over Chinese fast fashion retailer Shein’s refusal to answer questions about its supply chain at a hearing. The parliamentarian also inquired about how the exchange verifies statements made by companies applying for listing.
The Chairman of the UK Business and Trade Committee, former Labour Cabinet Minister Liam Byrne, wrote to Julia Hoggett, CEO of the LSE, after Shein’s EMEA General Counsel Yinan Zhu declined to answer questions about whether the company’s supply chain includes cotton sourced from Xinjiang during a committee hearing on Tuesday, January 7th.
During the hearing, Zhu requested to respond to further inquiries in writing.
Byrne responded to Zhu’s refusal to directly answer questions by stating, “You can’t tell us anything about the IPO, you can’t tell us anything about cotton in Shein products, in fact, you can’t tell us much at all.”
In his letter to the LSE, Byrne queried if there are mechanisms in place to verify statements by companies applying for listing, especially regarding preventing the use of forced labor in products.
He also wrote to the UK financial regulatory body responsible for evaluating and approving listings like Shein’s, asking how they ensure all legal risks are disclosed before the initial public offering (IPO).
Shein, known for selling clothing, shoes, accessories, and tools at very low prices, has faced allegations of poor working conditions in its Chinese factories and involvement of forced labor in its supply chain. Shein has responded by stating that the company has a zero-tolerance policy towards forced labor and is committed to respecting human rights.
Last June, the UK human rights organization “Stop Uyghur Genocide” took legal action to halt Shein’s planned listing on the LSE, accusing the retailer’s suppliers of using forced labor involving Uyghur people.
Byrne represents the Labour Party in the Northern constituency of Birmingham Hodge Hill and serves as a member of the King’s Counsel Council in the UK. He is also Chair of the Global Parliamentary Network at the World Bank and the International Monetary Fund. With expertise in economics, foreign policy, and public service reform, Byrne has authored over twenty academic articles and publications. He previously held the position of Gwilym Gibbon Research Fellow at Nuffield College, Oxford University, and is an honorary professor at the University of Birmingham.