Shein's Cotton Sourcing: Navigating Regulations Amid Global Scrutiny

Shein mandates contract manufacturers to source cotton from approved regions, excluding China, for U.S. markets to comply with the Uyghur Forced Labor Prevention Act. Allegations suggest using Xinjiang cotton, but Shein denies this. Questions remain about its policies for other markets while it plans a UK listing.

Online fast-fashion giant Shein has enforced a strict policy for its contract manufacturers, requiring cotton to be sourced only from specific approved regions—deliberately excluding China—when selling products in the United States. This directive aligns with the Uyghur Forced Labor Prevention Act, aimed at banning goods made through forced labor in China.

Despite this, Shein has faced serious allegations of incorporating cotton from China's Xinjiang province, infamous for the alleged use of forced labor. Both the U.S. and NGOs accuse the Chinese government of human rights violations in the region, a claim Beijing vehemently denies. Shein, however, insists its supplier code strictly prohibits forced labor.

Focusing on compliance, the company maintains that its sourcing rules apply to products sold globally, yet it remains ambiguous whether these apply to markets outside the U.S., including the UK, where it has plans for a London stock market listing. During a recent parliamentary inquiry, Shein's representatives were criticized for evading questions on the matter.

(With inputs from agencies.)