Amnesty International: 'Possible Shein IPO raises human rights concerns'

Chinese fast fashion giant Shein is believed to have filed for an IPO in London earlier this week, a move that is causing great concern within human rights organisation Amnesty International, which spoke of "a worrying development" in a press release.

Shein works with smaller clothing manufacturers in China who, according to Amnesty International, offer little transparency about wages and working conditions. In addition, there would be a lack of provenance of raw materials used to produce Shein's items.

“If Shein's current production methods are rewarded through an IPO, it would be an embarrassment not only to the London Stock Exchange, but also to the banks that help get the company listed and to all investors who want to benefit from it,” wrote Amnesty International. “It is a disgusting example of a process that makes the rich richer by squeezing the poor. It legitimises the view that it is acceptable to view workers and their rights, products and the environment as expendable – and that corrupts us all.”

Amnesty International believes that the UK authorities and the London Stock Exchange should only facilitate the listing if transparent and binding agreements have been made with the company around internationally accepted human rights standards across the supply chain and any identified abuses have been fully resolved.

Shein filed for a London listing after its US listing application was repeatedly rejected by lawmakers. A number of US lawmakers cited Shein’s exemption from the region's tax law and forced labour in its supply chain. Shein has yet to receive approval for a London IPO.