Business Secretary Anticipates Shein Aiming to Achieve Ethical and Moral Goals upon UK Listing
The minister expressed his willingness to welcome Shein’s listing in the UK, but emphasized that the fashion retailer must adhere to ethical and moral standards.
Chinese fashion retailer Shein will be expected to meet the same ethical and moral targets as other companies, according to Business Secretary Jonathan Reynolds on Sunday.
Shein, originally founded in China and based in Singapore, has applied to list on the London Stock Exchange. However, there are allegations that some of its clothing items may be produced using Uyghur forced labor in China.
Mr. Reynolds commented on Shein’s potential listing in London, stating that if a company is involved in forced labor, it should not be conducting business in the UK, regardless of where it lists.
The minister also raised concerns about a loophole that allows the retailer to evade import duties on small packages sent directly to customers.
After shifting its focus to London, Shein’s plan has been met with skepticism.
When asked if he would support Shein listing in the UK, Mr. Reynolds stated on Times Radio, “I would because our goal should be to regulate any company operating in the UK.”
Regulation ensures that companies adhere to standards in labor practices, tax compliance, and environmental impact, the minister added.
Mr. Reynolds emphasized that any company involved in forced labor in its supply chain should not be doing business in the UK, regardless of its listing location.
He highlighted the importance of companies meeting high standards in the UK listed market, including ethical and moral targets across all aspects of business.
‘Ethical and Moral Targets’
Mr. Reynolds stressed that companies listed in the UK must meet stringent standards.
He emphasized the expectation for listed companies in the UK to avoid forced labor in their supply chains and comply with ethical and moral standards, including tax obligations and overall business practices.
Regarding the tax loophole, Mr. Reynolds stated that all companies in the UK should pay their fair share of taxes.
He expressed concern about the specific tax loophole and indicated that he would address it with companies considering further business activities in the UK.
Shein has been contacted for comment.
In May, Shein announced significant investments in governance, compliance, and supplier empowerment to enhance responsibility within its supply chain.
The Stop Uyghur Genocide group urged the Financial Conduct Authority to reject Shein’s London listing attempt.
PA Media contributed to this report.
