A group that opposes forced labour in China has challenged fast fashion retailer SHEIN’s plans to list in London. The organisation has said that if Britain’s regulator approves the float, it will seek a judicial review of the IPO.
According to the organisation Stop Uyghur Genocide, cotton made using Uyghur forced labour is part of the retailer’s supply chain in China. Its intention to request a judicial review may put more pressure on the Financial Conduct Authority of the United Kingdom, but its chances of success are slim.
Regarding possible listings, the FCA stated that it is unable to comment. According to SHEIN, forced labour is totally forbidden in its global supply chain. As per reports, the online retailer hopes to list in London in the first half of this year if it receives regulatory permissions.
For its products marketed in the United States, its largest market, SHEIN stated in written testimony to UK parliamentarians that it only permits cotton from regions that have been approved, excluding China. Whether SHEIN’s limitations on cotton suppliers extended to goods sold in other markets, such the UK, was not made clear.
When using Chinese cotton in its products would not violate applicable rules and regulations, the retailer does not forbid it, it stated.
