Shein Expected to Meet Ethical and Moral Targets If Listed in UK: Business Secretary

A Shein pop-up store at a mall in Singapore on April 4, 2024. (Edgar Su/Reuters)

Chinese fashion retailer Shein will be expected to meet the same ethical and moral targets as other companies, Business Secretary Jonathan Reynolds said on Sunday.

Shein, which was founded in China and headquartered in Singapore, has reportedly filed an application to list on the London Stock Exchange, but the company is facing allegations that some of its clothes could be made with Uyghur forced labour in China.

Commenting on the potential listing of Shein in London, Mr. Reynolds said if a company is involved in forced labour, the question is not where the company lists, but it shouldn’t be doing business in the UK.

The minister also said he has concerns over a “loophole” that allows the retailer to avoid paying import duties on small packages delivered directly to customers.

Last year, U.S. lawmakers called for Shein to be investigated over allegations that Uyghur forced labour was used in the production of some of its clothes when the company was considering listing in the United States.

After the fast fashion retailer reportedly turned its focus to London, the plan was also met with concern.

Asked whether he would welcome Shein listing in the UK, Mr. Reynolds told Times Radio on Sunday, “I would because where any company is active in the UK, our aspiration should be that we regulate that company from the UK.”

Regulation is how the government ensures standards of companies’ practices on labour, tax, or environment, the minister said.

“To be absolutely clear, if any company had forced labour in its supply chain it shouldn’t be doing business in the UK at all, it shouldn’t be a question of where it lists.

“But where companies are active in the UK, the best way we make sure they hit the standards we want to see is for them to be regulated from the United Kingdom and therefore if a listing was to be made, I’d want that listing to be here in the UK.”

‘Ethical and Moral Targets’

Mr. Reynolds said companies listed in the UK have to meet “very high standards.”

“I’d absolutely say that no listed company in the UK should have any kind of forced labour in its supply chain and should be meeting exactly the ethical and moral targets on tax and all aspects of business,” he said.

Asked if he would close the tax loophole, the minister said, “I would expect every company in the UK to pay its fair share of tax.”

Pressed further, Mr. Reynolds said, “I am concerned about that particular loophole and will certainly be something I would want to be talking to them about if they were considering further business activity in the UK.”

Shein has been approached for comment.

In May, Shein said it was investing tens of millions of dollars in “strengthening governance and compliance across our supply chain, as well as in empowering our suppliers to build more successful and responsible businesses.”

In May, Lord Alton of Liverpool told The Epoch Times that he has “extensive” concerns regarding Shein’s potential listing in London because of the forced labour allegation, tax loophole, and the company’s “algorithm that is not only invasive but most likely undermines GDPR [General Data Protection Regulation] rules.”

He also said it’s unacceptable that Shein “legally cannot share the data they collect or disclose the extent of that collaboration with the UK or any UK regulator, including financial regulators in the City of London.”

Last month, the Stop Uyghur Genocide group wrote to the Financial Conduct Authority, calling on the regulator to reject Shein’s attempt to list in London.

PA Media contributed to this report.