Chinese low-cost fashion giant Shein has been accused of using forced labour from Uyghurs to make its clothes.
Campaigners said evidence submitted to the City watchdog should justify the retailer being barred from selling shares on the London Stock Exchange.
The Uyghurs are the largest ethnic minority group in China‘s north-western province Xinjiang. Chinese authorities have been accused of setting up labour camps for them and other Muslim minority groups.
Horrifying reports have included torture, sexual violence and sterilisation measures. Beijing denies all claims of human rights abuse.
In the latest controversy for the retailer, Stop Uyghur Genocide’s (SUG) submission to the Financial Conduct Authority claims Shein’s suppliers are likely to be using materials made in such camps.
Chinese low-cost fashion giant Shein has been accused of using forced labour from Uyghurs to make its clothes. Pictured: A general view outside the SHEIN VIP party at Creamfields North on August 23, 2024 in Daresbury, Cheshire
Led by human rights campaigner Rahima Mahmut, SUG said use of forced labour would be unlawful under the Modern Slavery Act. Ms Mahmut, herself a Uyghur, is calling on the regulator and stock exchange to ‘uphold their standards’ and refrain from proceeding with Shein’s £50billion stock market listing.
The dossier says there are ‘clear, identifiable links’ between cotton production in the region and forced labour. The group points to a 2022 Bloomberg probe that revealed lab tests of Shein clothes found the cotton originated from this region.
High Court rulings suggest that all cotton from this area is ‘tainted by forced labour’, SUG say.
The company previously said it has a ‘zero tolerance policy for forced labour’ and is ‘committed to respecting human rights’. It also insisted rigorous checks take place across thousands of suppliers, and it requires manufacturers to source cotton from ‘approved regions’.
Last week, Shein admitted an audit discovered two cases of child labour in its supply chain. It said suppliers involved were suspended and pledged that any future discovery of child labour would lead to the termination of contracts.
In the latest controversy for the retailer, Stop Uyghur Genocide’s (SUG) submission to the Financial Conduct Authority claims Shein’s suppliers are likely to be using materials made in such camps. Pictured: A model wearing a SHEIN dress
SUG lawyer Ricardo Gama said: ‘Our client wants to make sure that the UK’s capital markets aren’t used to fund the expansion of a business which has links to Uyghur forced labour. We have specific laws in place to root out modern slavery and financial institutions must make sure those laws are upheld.’
Michael Polak at Lawyers for Uyghur Rights said allowing the listing could see British consumers ‘unknowingly support Chinese Communist Party atrocities’.
Founded in 2012, Shein’s profits have soared thanks to budget-conscious shoppers in 150 countries.
Shein declined to comment.