British politicians are urging the UK government to address their concerns before the Chinese fast-fashion giant Shein gets the green light to list on the London Stock Exchange. These concerns include Shein’s alleged forced labor and data breach practices, exploitation of tax loopholes, and connections with the Chinese Communist Party (CCP). Founded in 2008 by Chris Xu, Shein is known for its wide range of ultra-cheap clothes and direct-to-consumer business model.
The company leverages consumer data tracking and analysis to identify fashion trends. Shein now has a significant presence in markets across Europe, the United States, and Asia. According to accounts filed with UK Companies House, Shein’s UK business achieved £1.
1 billion (about $1.41 billion) in sales last year and a pre-tax profit of £12.2 million (about $15.
6 million) over the 16 months ending on Dec. 31, 2022. The USCC reported that the company has faced substantial accusations of poor product quality, labor malpractice, environmental damage, regulatory scrutiny, and copyright infringement.
Shein is reportedly negotiating to list on the London Stock Exchange after encountering regulatory obstacles from the U.S. Congress in its attempt to float in New York.
He mentioned that Shein’s business model allegedly uses Uyghur forced labor to undercut rivals, takes advantage of the tax loopholes, and operates an algorithm that is not only invasive but most likely undermines GDPR (General Data Protection Regulatio.