Jurist UK activist group to block Shein’s listing for alleged forced labor in China

[Dadparvar]

UK activist group Stop Uyghur Genocide (SUG) will lodge a judicial review against the Financial Conduct Authority if it approves Shein’s initial public offering (IPO) on the London Stock Exchange (LSE), according to its statement issued on Monday.

The group contends that the FCA is legally required to block its application for listing on LSE because Shein failed to “explain company profits in light of proceeds of crime laws,” as required by the Modern Slavery Act.

Shein was questioned by a parliamentary committee on January 8th, where a company legal representative refused to conclusively answer questions on whether cotton was sourced from Chinese regions in which there is a risk of slave labor. The company relied on claims that its suppliers are independent companies to avoid definitively answering questions. In its statement, the group quoted the concluding comments of the Chair of the Business and Trade Select Committee, stating:

The Committee has been pretty horrified by the lack of evidence that you have provided today. You have given us almost zero confidence in the integrity of your supply chains. You cannot even tell us what your products are made from and you cannot tell us much about the conditions that workers have to work in. The reluctance to answer basic questions has, frankly, bordered on contempt of the Committee.

Forced labor allegations prevented an attempted IPO in the US, with Senator Marco Rubio advocating for “the same level of scrutiny in the UK.” Senator Rubio co-authored a letter to the Department of Homeland Security in 2023 advocating for more investigative scrutiny of direct-to-consumer companies with ties to China such as Shein, which participate in economic activities that carry a risk of forced labor.

Shein, an online fashion retailer founded in China but headquartered in Singapore, applied to the FCA for an IPO in June. In response to the application, SUG issued six legal letters in seven months and will start the judicial review if the FCA does not respond in 14 days.

China has faced numerous accusations of systematic human rights violations against Uyghurs in Xinjiang from human rights organizations and the international community. A 2022 United Nations Special Rapporteur on slavery report stated that it was reasonable to conclude that forced labor against Uyghurs was taking place in Xinjiang. A 2024 HRW report noted that grave “crimes against humanity” continue, as China’s policies in Xinjiang have remained largely unchanged.

The post UK activist group to block Shein’s listing for alleged forced labor in China appeared first on JURIST - News.

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