In a ruling on Thursday, a court in London ordered the UK authorities to reconsider whether to investigate the import of cotton allegedly produced by forced labor of Uyghurs in China’s Xinjiang region. The decision came after an Uyghur rights organization won an appeal. Meanwhile, just as this news emerged, the Chinese fast-fashion giant Shein faces scrutiny over forced labor issues as it prepares for its initial public offering in the UK.
The World Uyghur Congress, an international organization comprising exiled Uyghurs, took legal action against the UK’s National Crime Agency (NCA) after it declined to launch a criminal investigation.
Human rights groups and the US government have accused the Chinese government of widespread mistreatment of Uyghurs and other Muslim minorities in the western Xinjiang region, where much of China’s cotton is produced.
The Chinese government vehemently denies any mistreatment allegations. A spokesperson for the Chinese Embassy in London dismissed the forced labor allegations in Xinjiang as mere attempts by “anti-China elements” to smear the Chinese government.
The World Uyghur Congress argued in its legal proceedings that the NCA erred in not investigating whether Xinjiang cotton constitutes “criminal property.”
Last year, a judge at the High Court in London ruled that there was “clear and incontrovertible evidence of the use of detainees and prison labor, as well as forced labor in the production of cotton.” However, the World Uyghur Congress’s legal challenge was dismissed on the grounds that the UK authorities’ approach to the law – that there must be a clear link between the alleged criminal activity and specific products – was correct.
The appeals court overturned this decision, ruling that the issue of whether to investigate would be reconsidered by the NCA.
Rahima Mahmut, the UK Director of the World Uyghur Congress, described the ruling as “a huge victory and a moral victory.”
Mahmut stated in a press release, “This victory brings justice to Uyghurs and other Turkic people who have suffered torture and enslavement.”
A spokesperson for the NCA said, “We respect the decision of the appeals court and are considering our next steps.”
The day before, the UK-based human rights organization “Stop Uyghur Genocide” announced it had initiated legal action to prevent Shein from going public in London due to concerns over its labor practices.
According to Reuters, the human rights law firm Leigh Day has written to the UK Financial Conduct Authority (FCA) urging the regulatory body to reject any attempts by Shein to list on the London Stock Exchange (LSE).
“Stop Uyghur Genocide” reminded the FCA in its letter that due to worries about labor issues in Shein’s supply chain, the US Securities and Exchange Commission (SEC) had already refused to recommend Shein’s listing on American stock exchanges.
Following the blockade of its US listing attempt, reports indicate that Shein is now eyeing the London Stock Exchange, sparking skepticism and anger from British politicians and human rights activists.
UK peers and politicians have called for assurances that the Chinese fast-fashion giant will eradicate forced labor, share data with UK regulators, avoid tax loopholes, and be willing to cut ties with the Chinese Communist Party (CCP) before being allowed to list on the London Stock Exchange.
In a statement on Thursday, Shein declared, “Shein has a zero-tolerance policy towards forced labor, and we are committed to respecting human rights.”
“We take the visibility of our entire supply chain seriously, and we require our contract manufacturers to source cotton only from approved regions.”
Two sources informed Reuters on Monday that Shein secretly submitted documents to the UK market regulator in June, kicking off the process for a potential listing later this year in London.
On Tuesday, Amnesty International’s UK branch stated that due to concerns about Shein’s labor and human rights standards, the company’s potential IPO in London would bring “shame” to the London Stock Exchange.
Rahima Mahmut, the Executive Director of “Stop Uyghur Genocide,” expressed deep concern over Shein’s potential listing on the London Stock Exchange in a press release issued by Leigh Day.
She emphasized that the organization had been following reports from national security and human rights experts, suggesting that companies like Shein with links to the Chinese government may be associated with serious human rights violations, including modern slavery, posing ethical and security risks to both business and citizens.
Concurrently, Michael Polak, Chair of the Uyghur Human Rights Lawyers Association, stated in a Leigh Day press release, “FCA’s principles require all companies to operate with integrity. If a company is suspected of being involved in direct production of goods using forced labor in the Uyghur region, this may contravene these important principles. We will ask the FCA to consider the expert evidence we are providing before deciding on Shein’s potential public listing in the UK.”
“Stop Uyghur Genocide” is preparing to submit detailed materials to the FCA to support its claims.