Parliament expresses concerns about Shein to London Stock Exchange and City regulators
The Business and Trade Committee chairman has written to the London Stock Exchange (LSE) to express concerns about evidence regarding forced labor in the supply chain of Chinese fashion retailer Shein. Last week, Chairman Liam Byrne stated that MPs were alarmed by Shein’s General Counsel Yinan Zhu’s refusal to answer questions during a committee meeting about the use of Xinjiang Province cotton in their clothing.
Shein is reportedly planning to list on the LSE, prompting Byrne to reach out to LSE Chief Executive Officer Dame Julia Hoggett to highlight the committee’s concerns. In a letter dated Thursday and published on Friday, Byrne expressed profound worry about Shein’s lack of transparency regarding their supply chain integrity.
Byrne also wrote to the Financial Conduct Authority (FCA) inquiring about the checks and disclosures required for listings on the LSE to ensure legal risks are revealed.
During the Jan. 7 committee session, Zhu repeatedly avoided answering questions related to the supply chain, requesting to respond in writing later. Byrne criticized Zhu for the lack of evidence provided, stating that Shein’s responses bordered on contempt of the committee.
Byrne subsequently sent another letter to Zhu on Jan. 10, requesting further details on Shein’s approach to human and labor rights, including questions about Xinjiang cotton. The committee expects a response by Jan. 20.
An LSE Group spokesperson confirmed that they received the letter from Byrne and are preparing a response. Shein declined to comment on the situation.
Chancellor of the Exchequer Rachel Reeves recently visited Beijing and Shanghai, announcing access to a £600 million Chinese market for the UK economy over the next five years. Reeves emphasized the importance of engaging with international partners to grow the British economy while upholding security and values.
