Fast-fashion behemoth Shein has uncovered two instances of child labour within its supply chain last year, the company informed Members of Parliament.
The disclosure came from Shein's general counsel for Europe, the Middle East and Africa, Yinan Zhu, in a letter to MPs that was reported by The Guardian, as reported by .
Zhu detailed one case involving an 11 year old child. "Nonetheless, and irrespective of these details, we took the issue extremely seriously, including designating the incident as child labour and immediately terminating our relationship with the supplier," the letter stated.
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In addition, Shein encountered two similar situations in 2023, where children under 16 were found working in the production of its affordable apparel, both of which were "resolved swiftly."
The company also took measures to ensure that contract manufacturers improved their vetting processes, such as verifying and keeping records of all employees' identification documents.
A 2021 report by advocacy group Public Eye initially shed light on the working conditions within Shein's supply chain, revealing workers at six Shein suppliers faced up to 75-hour workweeks in factories with obstructed exits. In response, Shein has established an internal team dedicated to overseeing its supply-chain partners.
The letter indicated that Shein conducted approximately 4,300 audits involving around 317,000 workers in 2024, an increase from 4,000 audits of 285,000 workers the previous year. These revelations are poised to add further complications to Shein's aspirations to float on the London Stock Exchange.
Other challenges facing the company include alleged intellectual property violations, governance and transparency issues, as well as threats to its business model from US President Donald Trump.
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Trump has vowed to close a shipping loophole that enables fast-fashion behemoths like Shein and Temu to evade customs and tariffs when transporting small parcels of goods.
The EU may also adopt similar measures. Shein had been aiming for a $50bn IPO, but there are reports indicating that investors are pressuring the fast-fashion titan to reduce its valuation.
City AM has reached out to Shein for a response.