Shein bans cotton from unapproved regions for US

Business

Shein. Credits: Unsplash.

Chinese fast-fashion giant Shein has introduced new rules for sourcing cotton in products destined for the US market, Reuters reports. The company announced that cotton will now only be sourced from approved regions, such as the US, India, Brazil and Australia.

Pressure is mounting for Shein to be more transparent about its supply chain, especially as the company prepares to go public in London. However, the move comes in response to the US law, the Uyghur Forced Labor Prevention Act, which bans products that may have been made using forced labour from Xinjiang, a region in China.

The fast-fashion company uses isotope testing through the company Oritain to verify the origin of its cotton. Tests in 2024 found that 1.3 percent of its cotton came from unapproved regions, raising questions about its compliance with international labour standards. Shein has been accused for years of sourcing cotton from Xinjiang, where human rights groups say the Chinese government is violating the rights of Uyghur people. The Chinese government and Shein itself have long denied the allegations.

While Shein has now tightened its policies for the US market, it is not yet clear whether these rules will also apply to products sold in Europe and the UK. This is of great importance, as Shein plans to list on the London Stock Exchange. British MPs have long been asking the company for more information about the origins of its cotton, as this is important information for consumers and investors.

Shein Distribution UK Limited posted a pre-tax profit of 24.4 million pounds in 2023, while annual revenue came to 1.55 billion pounds, up 38 percent ahead of its London IPO.

This article originally appeared on FashionUnited.NL. It was translated to English using AI and edited by Rachel Douglass.

Cotton

Shein

Supply Chain

Workers Rights

Xinjiang