Shein Faces Resistance ‍in UK Listing​ Plan Amid Forced Labor Concerns

Release date: 2024-09-16 19:03

International Pressure Mounts on Fast Fashion E-commerce Platform

Guangdong

The ⁢”fast fashion” e-commerce platform Shein is facing⁤ resistance in⁤ its ‌listing plan in the​ UK, ‌as some political ‍parties demand a closer review of whether⁣ the company’s products involve​ forced labor.

Shein, a cross-border e-commerce platform that sells affordable clothing, has moved to London, UK to prepare for its listing⁣ after its plan in the United States was blocked. However, according ‍to the ​Financial​ Times,⁤ the company has also encountered political ⁣resistance‍ in the UK.

A member‍ of the⁣ British Labour Party‌ has called on ‌the​ government⁤ to⁤ ban the​ import of⁤ products involving forced labor ​in Xinjiang, citing obvious due diligence‌ issues for Shein’s potential listing that ‌have not yet been resolved. The party has demanded‍ a more in-depth review ⁢of Shein and hopes to summon the ‌company’s senior management for‌ questioning.

Shein launched its listing ‌plan as early as the end ‍of last year, with its original target ⁣being the United ‌States. However,⁤ when it‌ submitted ‍its listing application to the US regulator⁤ at the beginning of the year, it encountered obstruction‍ from US politicians, who claimed​ that the ⁤company’s products ⁢came from forced labor.

Shein, which⁢ was founded in the ⁣mainland and headquartered in Singapore,‌ has ​repeatedly ‍reiterated that the company has a zero-tolerance‍ policy on forced labor.

In addition, the‌ US government plans​ to cancel the tariff exemption ⁤for small packages, with the aim⁤ of taking‌ effect ​as soon as the end of ​this year. ⁤Under‍ current⁢ policy, the United States allows goods with a retail⁤ value⁣ of less​ than US$800 to be exempt ​from tariffs. The⁢ measures are seen as ⁢targeting Shein and Temu, which is owned by Pinduoduo,⁣ as⁤ they grab market share with low prices.

Some analysts estimate that this will indirectly weaken their price advantage.