Fast-fashion retailer Shein has confirmed that cotton used in products sold in the United States is sourced exclusively from approved regions, excluding China, as part of its compliance with the Uyghur Forced Labor Prevention Act (UFLPA). The company made the disclosure in written evidence submitted by Yinan Zhu, Shein's general counsel for Europe, the Middle East, and Africa, to a British parliamentary committee.
The UFLPA bans goods made with forced labor from entering the U.S., targeting products linked to China's Xinjiang region, where allegations of forced labor involving Uyghur minorities have drawn global condemnation. Beijing denies these allegations, but U.S. authorities and human rights organizations maintain that abuses are widespread in the region's cotton production industry.
Shein stated that its U.S.-bound products rely on cotton from Australia, Brazil, India, the United States, and, in limited cases, regions in Europe, the Middle East, Africa, and Southeast Asia. These sourcing practices are verified through isotopic testing technology provided by Oritain, which checks for unauthorized cotton origins. Zhu's written evidence revealed that 1.3% of the cotton tested in 2024 came from unapproved regions, though the specific areas were not disclosed.
The company's supplier code of conduct prohibits forced labor across its supply chain. However, Zhu noted, "We do not prohibit the use of Chinese cotton in our products specifically where such use would not contravene the laws and regulations of the jurisdictions in which we operate." This admission leaves open the question of whether products sold outside the U.S., including in the United Kingdom, may still include cotton from Xinjiang.
Shein's cotton sourcing practices have come under intensified scrutiny as the company plans an initial public offering (IPO) on the London Stock Exchange. At a January 7 parliamentary hearing, Zhu declined to answer repeated questions from committee chair Liam Byrne about whether Shein's products in Britain contain Xinjiang cotton. Byrne subsequently raised concerns with the Financial Conduct Authority (FCA), which oversees IPOs, urging further investigation into Shein's compliance with ethical and regulatory standards.
A spokesperson for the Business and Trade Committee stated that Byrne plans to write to Shein again to seek clarity on the matter. The lack of a definitive response has raised concerns about Shein's transparency ahead of its IPO.
The FCA's Chief Executive Nikhil Rathi emphasized in a separate letter that IPO applicants are subject to rigorous background checks, including the disclosure of legal risks. While Rathi did not address Shein specifically, the agency's stance highlights the level of scrutiny faced by companies aiming to access UK public markets.
