LONDON, Jan 7 (Reuters) - A Shein representative
declined to provide a direct answer when asked by a British
parliamentary committee on Tuesday whether the online
fast-fashion retailer uses cotton from China, a key issue for
potential investors concerned about its supply chain.
It was the first opportunity for British lawmakers to
publicly question the company working towards a London initial
public offering, as part of a hearing focused on labour rights
in global supply chains which online retailer Temu also
participated in.
Singapore-headquartered Shein, which was founded in China in
2012, is awaiting regulatory approvals for the IPO from both
Britain's Financial Conduct Authority and China's securities
regulator.
Shein's general counsel for Europe, Middle East and Africa
(EMEA), Yinan Zhu, said: "The suppliers we work with, they are
based in China, in Turkey and Brazil, and obviously many of them
are in China."
She asked the committee for permission to write to them
about further questions, when pressed further on whether the
company sources cotton from China.
Asked about the IPO, Zhu said she was not able to comment.
Growing visibly exasperated, the chair of the committee Liam
Byrne said: "You can't tell us anything about listing, you can't
tell us anything about cotton in Shein products, and you can't
tell us much, in fact."
The U.S. and NGOs have long accused China of human rights
abuses in the Xinjiang Uyghur Autonomous Region, where they say
Uyghurs are forced to work producing cotton and other goods.
Shein has previously said it requires contract manufacturers
to only source cotton from approved regions, and that it has a
zero-tolerance policy for forced labour.
But publicly distancing itself from Xinjiang cotton is
risky, as clothing retailers that have done so in the past faced
criticism and boycotts from Chinese consumers, and pushback from
Chinese authorities.
Most recently, Japan's Uniqlo was slammed on Chinese social
media after a November BBC interview in which Chief Executive
Tadashi Yanai said the retailer is not using cotton from the
region.
In contrast with Zhu, Temu's senior legal counsel Stephen
Heary said the online retailer, part of Chinese ecommerce giant
PDD Holdings ( PDD ), does not permit sellers from the Xinjiang
region to sell on its platform.