Shein's Compliance Challenge: Navigating Cotton Sourcing and Regulatory Scrutiny

Online retailer Shein mandates that its contract manufacturers source cotton for U.S. products only from approved regions, excluding China. This is to comply with the Uyghur Forced Labor Prevention Act. Concerns persist about Shein's transparency regarding its use of Chinese cotton amid its planned London IPO.

Online fast-fashion giant Shein is under scrutiny for its cotton sourcing practices. The retailer has instructed suppliers to obtain cotton only from approved regions outside China for products sold in the U.S., adhering to the Uyghur Forced Labor Prevention Act, which prohibits imports made with forced labor from China.

Questions have arisen over Shein's potential use of cotton from China's Xinjiang region amid human rights abuse allegations, denied by Beijing. The controversy has intensified as Shein seeks a London IPO, with public officials demanding transparency regarding its sourcing practices.

The retailer admits a small percentage of its cotton comes from unapproved areas while maintaining compliance through isotopic testing. Despite a parliamentary hearing, Shein has been criticized for its lack of specificity about the origins of its cotton, prompting further inquiries and regulatory scrutiny.

(With inputs from agencies.)