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Stop Uyghur Genocide serves Shein spokesperson with dossier alleging supply chain abuses before they give evidence to Parliamentary Committee

Lawyers acting for Stop Uyghur Genocide (SUG) have provided Shein’s in house lawyer with a dossier of evidence alleging supply chain abuses ahead of the company’s appearance before the Business and Trade Select Committee on Tuesday 7 January.

Posted on 03 January 2025

Shein legal advisor for Europe, Middle East and Africa, solicitor Yinan Zhu, has been called to give evidence before the Parliamentary Committee as part of its examination of the Employment Rights Bill.

Reuters reports that the committee is also looking at how to ensure adequate protection against importing poor labour standards, including concerns over forced labour.

Last summerSUG, headed by Uyghur human rights campaigner Rahima Mahmut, sent the same dossier to the Financial Conduct Authority (FCA), attaching a copy of a letter it had sent to Shein group companies and senior managers. The dossier contains information which it says reveals there is a high likelihood of forced labour in the online fashion seller’s supply chain which it claims should bar the company from listing on the London Stock Exchange.

The dossier was delivered to Yinan Zhu before they are due to appear before the select committee, chaired by Liam Byrne, on 7 January.

SUG argues that use of forced labour in supply chains would be unlawful under the Modern Slavery Act and would mean that Shein would have to explain company profits in light of proceeds of crime laws.

The charity says the FCA should block Shein’s application for listing on the LSE given there is good reason to believe the company’s supply chains are affected by modern slavery, potentially resulting in proceeds of crime offences.

The United States Securities and Exchange Commission had already refused to recommend the listing of Shein for trading in the US because of concerns around labour practices in Shein’s supply chains.

SUG says its dossier shows clear, identifiable links between cotton production in the Uyghur region (XUAR) and forced labour and points to publicly available evidence which they say links Shein’s supply chains to cotton produced in XUAR.

Rahima Mahmut, Executive Director of Stop Uyghur Genocide, said:

"The select committee must properly scrutinise labour practices and the FCA must take a firm stand and block Shein's listing on the London Stock Exchange. We look to our institutions to ensure that any companies who may be profiting from oppression are held to account."

Leigh Day solicitor Ricardo Gama, who represents Stop Uyghur Genocide, said: 

“It’s important that our system of checks and balances works to make sure that companies which are shown to make their profits through criminal practices, and in particular forced labour, aren’t allowed to raise capital on the London market. That includes the FCA as financial regulator, as well as MPs through parliamentary select committees. Our client urges these institutional actors to uphold the rule of law in the regulation of multinational companies like Shein.”

Shein is reported as stating that it has a zero-tolerance policy for forced labour and says it is committed to respecting human rights.

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