A frontbench Conservative has said Shein has ‘no place’ on the London stock market as doubts grow over its planned listing. In one of the boldest interventions from an MP yet, Alicia Kearns, shadow minister for national security, said there were ‘grave concerns’ about the Chinese fast fashion giant’s ethics. The company, which was founded in China in 2008 but is now based in Singapore, was expected to make its blockbuster public debut before Easter but faces delay as campaigners complain about allegations of abuse in its supply chain.
Echoing other fellow MPs, Kearns said Shein has so far failed to address concerns of forced labour. She added: ‘With such low prices the London Stock Exchange needs to ask itself, whose suffering is subsiding those prices? Shein is either unable – or more likely unwilling – to answer this.’. The comments came as Shein chairman Donald Tang sought to reassure investors amid reports the firm’s value may have fallen from around £50billion to £24billion.
Concerns: Alicia Kearns, shadow minister for national security, said said Shein has 'no place' on the London stock market. Insisting Donald Trump’s tax clampdown on cheap parcels will not hit the business, Tang said: ‘Despite the recent challenges, our growth remains strong, driven by our ability to offer a diverse selection of fashion and lifestyle products at consistently affordable prices.’.
Shein is facing mounting questions over its listing plans. At a parliamentary hearing in January, the fast-fashion giant’s top UK lawyer, Yinan Zhu, refused to say whether its cheap clothes are linked to slave labour. Human rights groups have accused China of slave labour in Xinjiang, where they say Uyghurs – a mostly-Muslim ethnic group – are forced to produce cotton. There are fears that Shein’s clothes use cotton from this area.
Shein insists it has a ‘zero tolerance approach to forced labour’. Kearns also accused Labour of rolling out the ‘red carpet’ for the Chinese Communist Party (CCP). ‘Whether government to government, in our renewable energy sector or with fast fashion or the CCP’s new embassy, this government’s policy to China is clear – turn a blind eye and demonstrate subservience,’ she said. Liberal Democrat peer and China critic Lord Alton also told the Mail: ‘We know enough about its supply chains to hold back from giving it a seal of approval.’.
