UK cross party Business and Trade Committee have scheduled an inquiry session for 7 January 2025, targeting fast-fashion online retailer Shein and global e-commerce platform Temu.
The committee will probe these companies regarding the treatment of workers within their supply chains, according to a Reuters report.
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This scrutiny comes at a critical time for Shein, which is currently aspiring to secure a spot on the London Stock Exchange. Shein’s roots trace back to China; however, it has since relocated its headquarters to Singapore.
Spearheaded by Liam Byrne, a former minister from the Labour Party, the committee’s investigation, extends beyond the examination of the proposed employment rights legislation. A broader objective is to safeguard against the infiltration of subpar labour standards into the UK market, with particular attention to allegations of forced labour.
Shein’s Europe, the Middle East, and Africa (EMEA) general counsel Yinan Zhu has been summoned to testify before the committee.
Similarly, Temu representatives Stephen Heary, Senior Legal Counsel, and Leonard Klenner, Senior Compliance Manager, are expected to present evidence, as per the report.
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By GlobalDataBoth companies have come under fire for allegedly endorsing inadequate working conditions at Chinese factories that manufacture their products. Claims of forced labour within their supply networks have also surfaced.
In response to these allegations, both firms have publicly denounced forced labour.
In December 2024, the Vietnamese government halted the activities of Temu and Shein as the companies have failed to comply with the Southeast Asian nation’s regulatory requirements for e-commerce services registration.
