Shein uses forced labor on Uyghurs

Lawyers representing the rights group Stop Uyghur Genocide (SUG) submitted evidence to Shein's legal team, accusing the fashion giant of complicity in supply chain violations linked to forced labor in China's Uyghur region.

The file was delivered days before Shein's European legal counsel Yinan Zhu's appearance before the UK Business and Trade Select Committee on January 7. The committee is reviewing the Employment Rights Bill, focusing on strengthening protections against poor working standards, including forced labor.

STRONG STANCE NEEDED!

SUG claims evidence submitted to the Financial Conduct Authority (FCA) last summer and now to Shein's legal team shows the company's supply chains are "likely" tainted with forced labor, particularly in East Turkistan. The campaign group insists these allegations should prevent Shein's London Stock Exchange (LSE) listing.

SUG Executive Director Rahima Mahmut called for immediate investigation of Shein's labor practices, stating: "The select committee must properly examine labor practices, and the FCA must take a strong stance by preventing Shein's LSE listing. We expect our institutions to hold accountable all companies profiting from persecution."

VIOLATING MODERN SLAVERY ACT

The file claims identifiable links between East Turkistan-sourced cotton and forced labor, raising concerns that Shein's operations could violate the UK's Modern Slavery Act if proven. Such violations could question the legality of company profits under proceeds of crime laws.

These allegations mirror recent U.S. developments, where the SEC refused to recommend Shein's listing on American exchanges due to similar forced labor concerns.

Leigh Day lawyer Ricardo Gama emphasized accountability's importance, stating companies profiting from criminal practices, especially forced labor, shouldn't be allowed to raise capital in markets like London.

As the January 7 parliamentary session under Liam Byrne approaches, Shein faces pressure to address these serious allegations. SUG continues advocating for the FCA to prevent Shein's LSE listing, citing supply chain involvement in modern slavery and potential proceeds of crime.