Trump ally urges Jeremy Hunt to investigate Shein’s ‘slave labor and sweatshops’
A US senator who is in the running to be Donald Trump’s vice-presidential running mate is calling for an investigation into Shein over allegations of using “slave labor and sweatshops.” Marco Rubio, a potential Republican vice-presidential candidate, wrote a letter to Chancellor Jeremy Hunt urging him to look into the matter before Shein’s potential £50bn London stock market listing.
Rubio expressed concerns about what he described as “unethical and irresponsible business practices” by Shein, including the use of “slave labor, sweatshops, and trade tricks” to achieve success. He emphasized the importance of addressing these issues and warned of the risks associated with allowing Shein to join the London Stock Exchange.
The letter, also addressed to Nikhil Rathi, chief executive of the Financial Conduct Authority, comes amidst growing pressure on government officials to scrutinize Shein more closely. Nigel Farage, the leader of Reform UK, also voiced opposition to Shein’s potential listing on the London stock market, calling it a “very bad idea” that would not solve the IPO crisis in the City.
Shein, a Chinese fast-fashion company, is currently preparing for a London listing after facing political opposition in the US. Rubio had previously criticized the company and urged the US Securities and Exchange Commission to block a New York listing due to lack of transparency regarding its operations.
One of the main concerns surrounding Shein is its Chinese supplier base, particularly in Xinjiang, where forced labor of Uyghurs has been alleged. Rubio highlighted the importance of addressing these allegations and taking action to protect investors, referencing the UK’s history of abolitionism and the Modern Slavery Act.
Despite denying claims of forced labor in its supply chain, Shein has faced criticism and calls for transparency from various quarters. Labour MPs have expressed support for Shein’s decision to list in London, emphasizing the importance of investment, productivity, and growth.
Shein, originally founded in China but now headquartered in Singapore, maintains a zero-tolerance policy for forced labor and emphasizes providing a safe and fair work environment for all its suppliers’ employees. The company attributes its success to its on-demand business model and flexible supply chain.
Rubio’s efforts to address the allegations against Shein come as he is considered a front-runner for Donald Trump’s vice-presidential pick in the upcoming US elections. ABC News recently reported that Rubio was among a small group of individuals asked to submit vetting paperwork for the vice-presidential candidate selection process.