Shein’s ambitions to list on the London Stock Exchange have been cast into renewed doubt after the fast-fashion behemoth was roundly criticised by MPs for repeatedly failing to address concerns about cotton sourcing and alleged forced labour in Xinjiang.
The Chinese-founded retailer, which hopes to secure a UK flotation this year, appeared before the Business and Trade Select Committee on Tuesday, where Yinan Zhu, Shein’s general counsel for Europe, the Middle East and Africa, was grilled on the company’s supply chain practices. However, her refusal to give definitive answers regarding the origin of Shein’s cotton sparked anger among members of the committee.
Liam Byrne, who chairs the panel, expressed shock that a firm selling billions of pounds’ worth of products to British consumers—and seeking to float in London—could provide so little clarity. “You’ve given us almost zero confidence in the integrity of your supply chains,” he said. “Your reluctance to answer basic questions has frankly bordered on contempt of the committee.”
Zhu responded with a promise to write back to MPs on certain points, adding: “We comply with laws and regulations everywhere we do business. We have supplier codes of conduct, robust systems and policies, and strong enforcement measures in place to ensure we adhere to these standards.”
Yet she also refused to comment on whether Shein believes forced labour exists in Xinjiang, insisting: “I don’t think it’s our place to comment on … to having a geopolitical debate.” Byrne challenged this stance, describing the matter as “a question of fact”. The Liberal Democrat MP Charlie Maynard went further, accusing Zhu of “wilful ignorance” and highlighting that a simple search for cotton on Shein’s website yielded around 20 relevant products.
Shein’s tense appearance before Parliament comes amid growing unease over its proposed blockbuster listing in London. Following rapid expansion across the US, Europe and the UK, the retailer has filed papers with Britain’s market regulator, yet it awaits regulatory approval in both the UK and China. There are mounting calls for greater scrutiny of Shein’s environmental, social and governance credentials—particularly after it admitted to finding instances of child labour in some of its third-party manufacturers last year.
Several senior politicians have voiced concerns about Shein’s potential competitive advantage in avoiding duty and VAT for British consumers, while the company itself has previously insisted it maintains a “zero-tolerance policy” on forced labour. Originally intending to list in America, Shein withdrew after the US Securities and Exchange Commission demanded a public filing.
The London flotation could be worth an estimated £50.3 billion, potentially marking one of the largest deals on the London Stock Exchange in a decade. Despite repeated attempts, Shein did not immediately respond to requests for comment.
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Shein’s London float in jeopardy as MPs denounce ‘disrespect’ over forced labour questions