Fast fashion retailer Shein would be expected to meet “ethical and moral targets” on “all aspects of business” if it lists on the London Stock Exchange, according to the Business Secretary. Jonathan Reynolds said he is “concerned” about a “loophole” which allows firms to avoid import duties by shipping small packages directly to customers. He added he would want to discuss the issue with Shein if it was considering further business activity in the UK.
Ahead of the election, the Financial Times reported that the Labour leadership was resisting calls to close the tax loophole. US legislators last year also called for Shein to be investigated over allegations that Uighur forced labour was used in the production of some of its clothes. Mr Reynolds, asked if he would welcome Shein listing in the UK, told Times Radio: “I would because where any company is active in the UK, our aspiration should be that we regulate that company from the UK.
“That’s how we make sure that there are not things going on in terms of Labour practices or tax practices or environmental things that we’re not happy with. “To be absolutely clear, if any company had forced labour in its supply chain it shouldn’t be doing business in the UK at all, it shouldn’t be a question of where it lists. “But where companies are active in the UK, the best way we make sure they hit the standards we want to see is for them to be regulated from the United Kingdom and therefore if a listing was .
