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Campaigners have launched an attempt to torpedo Shein’s proposed £50bn London listing over claims the online retailer has benefited from the “proceeds of crime”.
Stop Uyghur Genocide has kickstarted a judicial review process to block the Chinese fast fashion empire’s planned float amid concerns over alleged abuses in the company’s supply chain.
Legal documents seen by The Telegraph reveal details of the claim, which is linked to the Financial Conduct Authority’s (FCA) looming regulatory decision on Shein’s listing.
The campaign group has argued that the City regulator should block the float on the basis that there is alleged evidence to indicate that Shein has benefitted from forced labour.
It said: “The publicly available evidence and Shein’s inability to answer simple questions about its supply chain raises a real risk that Shein’s cotton products, the profits from the sale of those products, and any securities issued by Shein are the proceeds of crime”.
It comes after the group submitted a dossier to parliament last month claiming Shein’s supply chains have links to cotton produced by Uyghur Muslims in Xinjiang. The dossier led to Shein facing a barrage of criticism during a heated hearing before the Business and Trade Committee last month.
MPs said they had “almost zero confidence in the integrity” of Shein’s supply chains and accused the company of “wilful ignorance” by refusing to say whether it sources cotton from China.
Liam Byrne, chairman of the committee, criticised Shein after a “disrespectful” appearance by Yinan Zhu, its general counsel for Europe, Middle East and Africa.
Shein’s hopes of a City listing are fading amid mounting legal and political scrutiny. It would be one of the biggest deals of the year if the company were to join the London Stock Exchange.
When asked about the dossier last month, Ms Zhu said the company, which is known for its ultra-low prices, complies with the laws and regulations in the countries it operates in.
Stop Uyghur Genocide has written to the FCA just weeks after a similar letter from Eleanor Lyons, the UK Independent Anti-Slavery Commissioner.
Following the hearing, she said: “I don’t think they’re being transparent about what is going on in their supply chains.”
Rahima Mahmut, executive director of Stop Uyghur Genocide, said: “The decision to challenge Shein’s stock exchange listing is a crucial step toward accountability.
“For the Uyghur people, who are subjected to forced labour as part of China’s oppressive regime, this sends a powerful message that profits cannot come at the cost of human dignity and freedom.