Shein has pledged to invest over £200 million in the UK and the European Union as the online fast-fashion company battles opposition to its potential listing on the London Stock Exchange (LSE). The Chinese company, incorporated in Singapore, is facing scrutiny for avoiding import duty by shipping cheap clothes directly to customers’ doors from Chinese factories, and allegations that their products could involve Uyghur forced labour. The initial pledge includes a 200 million euros (£169 million) Circularity Fund for start-ups and other businesses that work on recycled materials, new and emerging preferred fibres, and related areas.
The remaining 50 million euros (£42 million) is earmarked for commercialising designs of British and European artists, onboarding British and European businesses onto Shein’s Marketplace platform, and potential investments in R&D or pilot Shein production facilities in Europe or the UK, the company said. Shein has reportedly applied to list on the LSE in June after its previous plan to list in New York was held up following resistance from U.S.
lawmakers and after China Securities Regulatory Commission reportedly advised against a U.S. listing.
The company’s potential LSE listing is also up in the air amid concerns in the UK and speculations of future Chinese intervention. UK-based right group Uyghur Genocide group has also written to the Financial Conduct Authority last month, calling on the regulator to reject Shein’s attempt to list in.
