Ahead of likely Wall Street listing, US lawmakers call on SEC to probe China’s Shien over Uyghur claims

A group of US lawmakers have called for a probe against Chinese fast fashion brand Shein over claims that it is using Uyghur forced labour to make clothes.

Ahead of the company’s initial public offering, around 22 lawmakers—both Democrats and Republicans— have shot off a letter to the market regulator Securities and Exchange Commission (SEC), to independently audit and verify "that the company does not use Uyghur forced labour”.

It comes amidst reports that the Chinese fashion brand may sell its shares in the US.

“We strongly believe that the ability to issue and trade securities on our domestic exchanges is a privilege, and that foreign companies wishing to do so must uphold a demonstrated commitment to human rights across the globe,” the lawmakers further wrote in the letter.

The lawmakers claimed that they have "credible allegations of utilising underpaid and forced labour" and sought a thorough probe before the firm is allowed to be listed on the US stock exchange.

Shein’s response

Responding to the letter, Shein denied having used forced labour cotton from Xinjiang for its clothing lines.

"We have zero tolerance for forced labour," Shein told the BBC.

The company also said that it currently has no plans for a listing on Wall Street.

"We are committed to respecting human rights and adhering to local laws and regulations in each market we operate in."

"Our suppliers must adhere to a strict code of conduct that is aligned to the International Labour Organization's core conventions," it added.

Do Shein’s clothes have forced cotton from Xinjiang?

Some of the Western brands have already removed Xinjiang cotton from their supply chains, and the US has passed a new rule on the import of goods from Xinjiang which requires firms to prove they were not produced using forced labour.

The allegations of using Uyghur forced labour stem from a report by Bloomberg last year that the Chinese fashion behemoth was using cotton from the Xinjiang region of China in some of its clothing. Two batches of clothes were selected for testing and it was found that both batches had cotton which was grown in the Xinjiang region.

A report by the United Nations also supported this claim that they have reasonable evidence to prove that forced labour was taking place in China’s far-western region.

(With inputs from agencies)

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