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A Uyghur rights group announced Wednesday that it has partnered with law firm Leigh Day to urge the Financial Conduct Authority (FCA) to block Shein from listing on the London Stock Exchange due to concerns over forced labor.

FCA Asked To Block Shein IPO : Campaign Against Shein's London IPO

U.K.-based Stop Uyghur Genocide stated that it has already written to the FCA, asserting that Shein has "imminent plans" to file a prospectus for a public listing in London. This move follows Shein’s decision to abandon an initial U.S. launch amid similar allegations. The London Stock Exchange would need to supervise Shein and implement measures to prevent trading of products linked to forced labor, particularly those involving the Uyghur ethnic minority in China's Xinjiang region. However, activists express doubt about the exchange's ability to enforce such measures.

Investment Community's Responsibility

"Our investment community must not support companies like Shein who are reportedly linked to the Chinese state and which we believe may enable the ongoing genocidal policies against Uyghurs," said Rahima Mahmut, executive director of Stop Uyghur Genocide and a prominent Uyghur activist. According to the U.S. Department of State and the United Nations special rapporteur on contemporary forms of slavery, China is conducting a campaign of mass detention and political indoctrination in Xinjiang, employing various human rights abuses, including forced labor.

FCA Asked To Block Shein IPO : Legal Actions and Demands

Stop Uyghur Genocide highlighted reports of state-linked companies like Shein being involved in "egregious human rights abuses." The group’s lawyers have requested the FCA to take several actions as they prepare a detailed submission to back their claims. Campaigners are urging the FCA to demand more information from Shein regarding the "accuracy" of its modern slavery statement, which is seven pages long on its website. Activists want the FCA to refuse Shein's listing unless it can prove its products are free from forced labor, limiting the company's listing options.

FCA Asked To Block Shein IPO :  Shein's Strategic Shift

Shein's potential shift to the London Stock Exchange occurs amid ongoing tensions between China and the U.S. In June 2023, the House China Select Committee's investigation found that nearly half the packages from China to the U.S. likely contained items produced with state-sponsored forced labor. The committee reported that Shein and its rival Temu "rely heavily on the de minimis exception to ship packages directly to U.S. consumers, allowing them to provide less robust data to [Customs and Border Protection], avoid import duties, and minimize the likelihood that the packages will be screened."

No Immediate Response from Shein

Representatives for the FCA declined to comment. Shein did not immediately respond to requests for comment on Wednesday.