Refusal to answer questions on forced labour links sparks select committee fury and deals blow to online retailers hopes of £50bn London stock market listing
MPs on a powerful parliamentary committee investigating the use of forced labour in products sold to UK consumers strongly criticised a representative of Chinese fast fashion firm Shein after the official declined to answer questions about whether it uses cotton from China’s Xinjiang region.
Liam Byrne, chair of the Business and Trade select committee, told the Shein representative, MPs were “horrified by the lack of evidence that you have provided today”. “You’ve given us almost zero confidence in the integrity of your supply chains,” he added.
A reluctance to answer simple questions such as whether it used cotton produced in China in products it sold “bordered on contempt” of the committee, he said.
It was the first chance MPs have had to publicly question the international retailer, which is reported to be working towards listing some of its shares on the London Stock Exchange.
The MPs are investigating labour rights in global supply chains. Rival Chinese retailer Temu also took part in the evidence session.
Singapore-headquartered Shein, which was founded in China in 2012, is seeking regulatory approval to list in the UK from both the regulatory Financial Conduct Authority and China’s securities regulator.
Yinan Zhu, the leading lawyer for Shein, said initially she did not know whether the company sourced cotton from China. She said she would seek permission to write to MPs about the cotton questions.
“For detailed operational information and other aspects, I am not able to assist. I will have to write back to the committee,” she said. Asked about the London listing, Zhu said she was unable to comment.
The US government and human rights groups have accused China of human rights abuses in the Xinjiang Uyghur Autonomous Region, where they say indigenous Uyghurs are forced to work producing cotton and other goods.
Frustrated at the lack of answers. Byrne said at one point: “You can’t tell us anything about listing, you can’t tell us anything about cotton in Shein products, and you can’t tell us much, in fact.”
Charlie Maynard, a Liberal Democrat MP, accused Zhu of failing to “respect the committee”.
Accusing her of “wilful ignorance” he asked if she thought she was “being disrespectful” by not answering many of the questions.
When Zhu responded by saying she was “doing the best I can,” Maynard interrupted, saying this is “simply not true.”
Shein has previously said it requires contract manufacturers to only source cotton from approved regions, and that it has a zero-tolerance policy for forced labour.
Publicly distancing itself from Xinjiang cotton is risky, as clothing retailers that have done so in the past faced criticism and boycotts from Chinese consumers, and pushback from Chinese authorities.
Eleanor Lyons, the UK Independent Anti-Slavery Commissioner, told MPs there is concern the UK has such high numbers of victims of modern slavery. A “fragmented labour market” and under-resourced enforcement bodies were to blame she said.
She said ministers needed to assess whether import bans would work but said before they did that the UK needed to create an effective labour market enforcement system and clear supply chain legislation.
“Before we’ve got those two things lined up, I don’t think import bans are the right thing to focus on,” she added.