‘Horrified’: Shein lambasted by MPs as fast fashion firm dodges questions
Fast fashion retailer Shein was lambasted by MPs and accused of behaviour that “bordered on contempt” today after a representative of the firm repeatedly refused to answer questions over its supply chain practices and upcoming IPO.
The Chinese-founded retailer, which is reportedly gearing up to list on the London Stock Exchange this year, has faced scrutiny over labour practices in its suppliers and admitted it found instances of child labour in some of its third-party manufacturers last year.
Shein’s London-based general counsel for EMEA, Yinan Zhu, was summoned by parliament to provide evidence to the Business and Trade Select Committee for its ‘Make Work Pay: Employment Rights Bill’ inquiry.
However, she was slammed by the group after repeatedly failing to answer questions over both its supply chain and upcoming IPO.
“For a company which is seeking to float on the London Stock Exchange, the committee has been pretty horrified by the lack of evidence that you have provided today,” said Liam Byrne, chair of the group.
“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.”
Asked at the beginning of the session whether Shein uses any Chinese cotton in its products, Zhu repeatedly failed to give a direct answer and requested to write to the committee with answers after the session.
She claimed multiple times that questions over its supply chain and IPO were outside of her direct remit and she therefore could not provide answers, triggering fury from the MPs.
“Frankly, I don’t think you’re respecting the committee at all,” said Charlie Maynard, the Liberal Democrat MP for Witney.
“It’s wilful ignorance and I’m asking you whether you think you are being disrespectful by being so blanketly void of answers,” he added.
Shein was summoned amid concerns it is using forced labour in its supply chain and sourcing cotton from Xinjiang province in China, where the region’s Uyghur minority are being persecuted and conscripted for forced labour, human rights group say.
Zhu also admitted to the committee that she was unaware of how many of Shein’s suppliers were actually outsourcing manufacturing to third party companies.
While Shein’s supplier code of conduct refers to setting working hours “responsibly”, the company’s general counsel for EMEA said it was “not for me to judge” on what constituted “appropriate” working hours, triggering backlash from the committee.
“What we’re saying is you are the general counsel for Europe, the Middle East and the whole of Africa, so I probably would say it is appropriate,” said Joshua Renyolds, the Lib Dem MP
The performance is likely to further stoke anger against the firm amid mounting unease over its plans to float in London. The London Stock Exchange and regulators have been urged to block the plans.
While it had initially intended to float in New York, Shein swapped its plans to the UK after resistance from Washinton and fears over its supply chain and data practices.