The Labour government wants something like a reset with China. As he tries to court investment, argue for continued collaboration on climate change, and persuade Beijing that the long established global governing institutions are still worth it, Keir Starmer and his foreign secretary have forgotten about the idea – in Opposition – of labelling Xi Jingping’s policies in Xinjiang as genocide.
But some Labour MPs are picking up the baton. The conduct of China’s e-commerce giants Shein (you know them) and Temu (you might not know them) are very much in question. A Select Committee lead by Liam Byrne is interested in calling Shein’s boss to give evidence ahead of the company’s planned bumper IPO and listing on the London Stock Exchange.
At the heart of it is the workers that make Shein’s clothes, and where they get their cotton from. The sanctity of the supply chain – and making sure it isn’t importing practices that are banned in the UK – is the issue. If and when Donald Tang and other senior executives from Shein are called before the committee it will want to ask them about workers’ rights, claims of forced labour, and how sure they can be that a product made in Xinjiang and sold online to a student in Northampton wasn’t fabricated with cotton harvested by a Muslim Uighur worker bussed in against their will?
The fast fashion behemoth Shein is in a particularly difficult spot because it is aiming to raise huge sums of money by offering a slice of itself to UK investors. With cash comes compliance. The Chinese online giants are revolutionising retail with their logistical might and their factory-direct-to-consumer model. Prices are very low. But some Labour MPs think it shouldn’t be at the price of accepting possible slave labour.
China’s car manufacturers could face similar questions as they look to advance further into the EV market here. How sure are they that their components haven’t come from the same place, made by the same forced workers, trafficked to a factory because China’s Communist leaders see their religion as a threat?
When I was China Correspondent at the BBC, a former senior diplomat once told me that China produces so much cotton in Xinjiang that supply far outstrips demand. The spill over is impossible to track. Anyone who says they know 100% that their Made in China cotton t-shirts are ‘forced labour free’ isn’t being honest, I was told.
Independent analysis in 2023 found less than 2% of Shein’s cotton tested positive for unapproved cotton. The company asserts it isn’t a beneficiary of slave labour. If the committee calls them its senior executives will almost certainly be asked one simple question: ‘Can you prove it?’
Chinese businesses operating in the UK must be prepared for heightened reputational scrutiny. Investment is a huge part of Labour’s growth plan; it’s clearly open for business. But MPs are reminding the behemoth retailers that you need to play by the rules, or face restrictions. Or worse still, risk your reputation with the most important people…your customers…