IN DEPTH | Shein Admits to Finding Child Labor in Supply Chain as It Prepares for Potential IPO

4GiTV on Odysee

Chinese fast fashion giant Shein has revealed that it uncovered two cases of child labor in its supply chain last year, as part of its efforts to tighten scrutiny of the manufacturers that produce its low-cost apparel.
The disclosure, made in Shein’s 2023 sustainability report, comes as the company is reportedly preparing for an initial public offering (IPO), potentially on the London Stock Exchange.
Shein stated that it temporarily suspended orders from the suppliers involved in the child labor cases, only resuming business after the suppliers implemented stricter measures to prevent such violations in the future.
“Both cases were resolved swiftly,” the company said, detailing that steps included terminating the contracts of underage workers, ensuring payment of outstanding wages, providing medical checkups, and arranging for the workers to be repatriated to their parents or legal guardians.
As part of its updated supplier policies, Shein announced that any violations involving child labor or forced labor would now result in the immediate termination of contracts.
This marks a significant shift from the previous policy, which allowed suppliers 30 days to resolve such issues before facing termination.
The company revealed that these violations were identified in the first nine months of 2023, with no further incidents reported in the last quarter of the year.
In total, Shein conducted 3,990 audits in 2023, a significant increase from previous years, utilizing third-party agencies for the majority of these inspections.
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