Shein Faces Criticism Over Supply Chain Transparency

Shein is facing significant criticism from UK Members of Parliament (MPs) over its lack of transparency regarding cotton sourcing and potential links to forced labor in Xinjiang, China. During a Business and Trade Select Committee hearing, Shein's general counsel, Yinan Zhu, declined to answer repeated inquiries about whether the company sources cotton from Xinjiang, prompting accusations of 'contempt' towards the committee. MPs expressed their 'horror' at the scant evidence provided about the integrity of Shein's supply chains, raising doubts about the company's upcoming London Stock Exchange IPO. Zhu defended Shein's operational practices but was challenged on her refusal to engage in discussions about forced labor. The scrutiny comes amid broader concerns about Shein's business practices, including an investigation by the Italian Competition Authority into misleading sustainability claims. This situation complicates Shein's ambitions to secure a UK listing, as confidence in its supply chain integrity remains low.