Chinese fast fashion giant Shein left UK MPs horrified on Tuesday after failing to answer questions over whether forced labour exists in its supply chain.
In a tense session before the business and trade committee, MPs claimed they had “almost zero confidence in the integrity” of Shein’s supply chains, accusing the company of “wilful ignorance” for refusing to reveal whether it sources cotton in China.
The criticism will dash the retailer’s chances for a £50 billion listing on the London Stock Exchange, which has been billed as one of the year’s largest transactions.
Liam Byrne, chairman of the committee, criticised Shein after a “disrespectful” appearance by Yinan Zhu, its general counsel for Europe, Middle East and Africa.
He said: “For a company that sells £1bn [worth of products] to UK consumers and is seeking to float on the London Stock Exchange, the committee has been pretty horrified by the lack of evidence you have provided today.
“You’ve given us almost zero confidence in the integrity of your supply chains. You can’t even tell us what your products are made from, you can’t tell us much about the conditions which workers have to work in, and the reluctance to answer basic questions has frankly bordered on contempt of the committee.”
Charlie Maynard, a Liberal Democrat MP, also weighed into the debate after Ms Zhu refused to say whether the company sources its cotton from China.
He said: “Frankly, I don’t feel you’re respecting the committee at all.
“You say to our chair that you can’t state whether Shein is selling any products in China which are made of cotton. I find that completely ridiculous. I find it very unhelpful and disrespectful that you’re here doing this. It’s wilful ignorance.”
He asked: “Do you think you’re being disrespectful by being so blatantly void of answers? We have asked you some very, very simple questions, and you are not giving us straight answers.
“And that, I find, dismisses the point of why we’re here today. Do you understand how simple the questions we’re asking you are? Do any of your products have cotton from China? That is not difficult.”
Ms Zhu responded by claiming she was answering their questions as best she could.
It also emerged during the hearing that lawyers acting for Stop Uyghur Genocide (SUG) last week provided Ms Zhu with a dossier of evidence alleging abuses in the company’s supply chain.
This follows widespread concern about its cotton supply and whether it comes from Xinjiang, where there is alleged forced labour of Uyghur Muslims.
When asked about the report, Ms Zhu said the company, which is known for its ultra-low prices, complies with the laws and regulations in the companies it operates in.
Eleanor Lyons, the UK Independent Anti-Slavery Commissioner, later told the committee that she has already raised concerns about Shein to the Financial Conduct Authority (FCA) about its potential listing.
She said: “I don’t think they’re being transparent about what is going on in their supply chains.”
The hearing marked MPs’ first opportunity to publicly grill the company as it prepares for its prospective float in London.
It had previously considered listing in New York but cooled on plans after a backlash from US politicians.
Shein has surged in popularity in recent years, with its UK sales topping £1.55bn for the first time last year. This led to it overtaking rival Boohoo.
