Shein admits to child labour cases in supply chain

Chinese fast fashion giant Shein has reported discovering two instances of child labor in its supply chain last year as it increases oversight of the companies that produce its clothing.

The company stated that it temporarily halted orders from the involved suppliers and only resumed business with them after they enhanced their efforts to address the issue, as reported by BBC. 

This disclosure in Shein's 2023 sustainability report comes as the company is reportedly preparing to go public by selling shares on the stock market.

The firm has faced criticism over the working conditions for laborers in the factories within its supply chain.

"Both cases were resolved swiftly, with remediation steps including terminating contracts with underage employees, ensuring the payment of any outstanding wages, arranging medical checkups, and facilitating repatriation to parents/legal guardians as needed," Shein said.

"Following appropriate remediation, the contract manufacturers were permitted to resume business."

Shein mentioned that it has now strengthened its supplier policies. Under the updated guidelines, any violations related to child labor or forced labor will lead to immediate termination of contracts.

The company noted that these two cases were identified during the first nine months of 2023, with no further instances found in the final quarter of the year.

This news comes as Shein prepares for a potential public stock offering. The BBC understands that the company filed preliminary documents for a London listing earlier this year.

In June, Marco Rubio, a prominent Republican on the US Senate Intelligence Committee and an ally of Donald Trump, wrote to then-UK Chancellor Jeremy Hunt, raising concerns about "grave ethics concerns" and Shein’s "deep ties to the People’s Republic of China."

“Slave labour, sweat shops, and trade tricks are the dirty secrets behind Shein’s success,” Mr. Rubio wrote in his letter to Mr. Hunt.