Shein's Cotton Sourcing Controversy Amid U.S. Compliance

Shein has imposed cotton sourcing restrictions for the U.S. market to comply with the Uyghur Forced Labor Prevention Act amid allegations of using Xinjiang cotton. While it vows to prohibit forced labor across markets, it hasn't clarified if similar restrictions apply globally, attracting British parliamentary inquiry.

Shein, a prominent online fast-fashion retailer, has instructed its contract manufacturers to source cotton only from approved regions, excluding China, for products sold in the U.S., its largest market. This move aligns with Shein's compliance with the Uyghur Forced Labor Prevention Act, aimed at banning products made with forced labor from entering the United States. Approved cotton sources include countries like Australia, India, and the United States, while select nations in Europe, the Middle East, and Southeast Asia are considered in limited cases.

The company has faced accusations of using cotton from China's Xinjiang province, where the U.S. and NGOs assert there are severe human rights abuses and forced labor practices against Uyghur people, claims denied by Beijing. Despite assurances of a supplier code of conduct prohibiting forced labor globally, Shein hasn't specified if similar restrictions apply to markets outside of the U.S., such as the UK, where it is planning a prospective London Initial Public Offering (IPO).

Britis parliamentarian Liam Byrne, leading a Business and Trade committee inquiry, seeks clarity on Shein's use of Xinjiang cotton in the UK market. While Shein utilizes isotopic testing to verify cotton origins, results showed 1.3% of cotton from unapproved regions in 2024. Byrne's query to Shein's general counsel, Yinan Zhu, regarding Xinjiang cotton usage remains unanswered, prompting further scrutiny by UK authorities ahead of Shein's potential IPO.

(With inputs from agencies.)