Table of Contents
The MP leading the business select committee has called for greater scrutiny of Chinese fast fashion giant Shein.
Committee chairman Liam Byrne supported the introduction of US-style laws banning the import of products made using forced labour.
He said ministers must ensure fast fashion group Shein’s supply chain is in tip-top shape amid expectations it will launch a £50bn initial public offering in London.
Byrne suggested Britain should introduce legislation similar to the Uighur Forced Labour Prevention Act in the US, or toughen its stance in other ways.
Working conditions: Business select committee chairman Liam Byrne has backed the introduction of US-style laws banning the import of products made using forced labour
The law assumes that all products manufactured in China’s Xinjiang province are made with forced labor unless U.S. Customs can verify otherwise.
Labour MP Byrne, who has just been re-elected as chairman of the all-party committee, hopes to bring the bosses of Shein and other Chinese companies, including TikTok, before MPs for questioning.
Shein had considered listing in the United States and Byrne said he had discussed the company with New York Stock Exchange officials before the election.
“They said it was clear there were some due diligence issues that had not been resolved,” he told the Financial Times.
“My view is that we do not have a Uighur Forced Labour Prevention Act in Britain and therefore it is the responsibility of ministers to ensure that Shein passes the highest standards in forced labour protection.”
The Uighurs are the largest ethnic minority in China’s northwestern Xinjiang province. Chinese authorities have been accused of setting up labour camps for them and other Muslim minority groups.
Horrifying allegations of torture, sexual violence and sterilisation measures have been made, but Beijing denies all claims of human rights violations.
Activists have said they are concerned that Shein suppliers may use materials made in such camps.
Shein has insisted it has a “zero tolerance” policy towards forced labour and has increased controls on suppliers.
However, activists and industry leaders have raised concerns about Shein’s supply chain, which uses thousands of suppliers in China, Turkey and Mexico.
The British Fashion Council has warned that the planned IPO is a “significant concern” for the industry.
However, Shein has filed paperwork with the city watchdog and sources say a listing could be expected early this fall.
DIY INVESTMENT PLATFORMS
AJ Bell
AJ Bell
Easy investment and ready-to-use portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free investment ideas and fund trading
interactive investor
interactive investor
Flat rate investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading commissions
Trade 212
Trade 212
Free treatment and no commissions per account
Affiliate links: If you purchase a product This is Money may earn a commission. These offers are chosen by our editorial team as we believe they are worth highlighting. This does not affect our editorial independence.