A lawyer representing Shein faced intense scrutiny during a British parliamentary hearing when she evaded questions about the company's use of cotton sourced from China. This hearing has raised significant concerns regarding labor practices and allegations of forced labor within Shein's supply chains, particularly relating to products manufactured in China's Xinjiang province, where serious human rights abuses have been reported against the ethnic Uyghur minority and other Muslim groups. The hearing took place as Shein prepares for a potential £50 billion ($62 billion) listing on the London Stock Exchange in the first quarter of this year.

Yinan Zhu, Shein's general counsel for Europe, Middle East, and Africa, was questioned alongside executives from rival brand Temu, both of whom are under scrutiny for their sourcing practices and compliance with labor regulations. Zhu's repeated refusals to confirm the presence of cotton from Xinjiang in Shein products led to frustration among committee members. According to reports, Zhu claimed it was not appropriate for her to engage in a geopolitical discussion, emphasizing compliance with local laws and regulations while asserting that numerous third-party audits verify the supply chains' integrity.

Committee chairman Liam Byrne expressed his disappointment, stating that the “reluctance to answer basic questions has frankly bordered on contempt.” He criticized Zhu's responses for providing “zero confidence” in Shein's supply chains, highlighting the company’s significant international presence, shipping to over 150 countries and claiming substantial profits in the UK market. In 2023, Shein announced a doubling of its profits in the UK, rising nearly 40% to £1.5 billion. Such growth comes amidst increasing scrutiny and calls for transparency in the company's operations.

The rising popularity of fast-fashion brands like Shein and Temu has not shielded them from backlash over their sourcing practices. Previous attempts for Shein to enter the U.S. stock market were thwarted by lawmakers demanding assurances against the use of forced labor in their supply chains. Meanwhile, Temu's compliance has also been challenged, with a U.S. Congressional report citing an “extremely high risk” related to forced labor in its supply chain without adequate audits.

As scrutiny continues, both companies find themselves in a balancing act of maintaining consumer support while ensuring ethical practices in rapidly growing global markets, especially concerning the contentious issues surrounding the Xinjiang cotton allegations.

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