Taking the shine off Shein


Test for new Labour government over listing of Shein on LSE

July 2024

The new government – likely to be Labour after the election tomorrow – will have an early test in connection with the Chinese clothing firm Shein which wishes to list on the London Stock Exchange. Both Conservative and Labour politicians have been keen to support the bid whereas Wall Street declined for a variety of reasons and doubts about the firm.

Shein has grown at a phenomenal pace but there are many doubts about its finances. LSE is keen to list the firm and there are a range of banks including Goldman Sachs and JP Morgan ready and willing to assist. Today, it was announced the EU is changing the rules which enabled the firm to import millions of pounds of clothing yet avoid duties because each was individually packed thus taking them under the £135 rule.

But the main problem is how the raw material is sourced and the use of sweat shops via sub-contractors in Bangladesh and Vietnam. As we have noted before, about three quarters of the cotton produced by China comes from Xinjiang where there are credible reports of the use of forced labour. In addition is the appalling treatment of Uyghurs where nearly a million are being persecuted and whose culture is being systematically destroyed. It has been described as a crime against humanity and genocide. Shein rejects these allegations and says it is committed to good governance.

Another problem is that the firm is likely to be audited by one of the big four accountancy firms who have a dismal record when it comes to Chinese firms and have been fined on several occasions for accounting scandals.

The Labour party has been keen to court the City as part of its business friendly policy. Three shadow ministers have met Shein’s chairman. Will they play their part in welcoming Shein to the LSE to keep the city bankers happy or will they look closely at their labour practices, lack of transparency and the probable use of cotton from Xinjiang? Amnesty have said to allow them to list will be a ‘badge of shame’. It will be an early test for the new government: money v. morals.

Sources: Private Eye ; Guardian; Amnesty International; Stop Uyghur Genocide

Sajid Javid breaches death penalty policy


Sajid Javid proposes allowing ISIL individuals to be sent to the USA with the risk of torture and execution

UPDATE: 1 August.  Article by Bharat Malkani in British Politics and Policy published by LSE which goes into the wider aspects of British policy in connection with executions on foreign soil. 

UPDATE: 26 July.  Following considerable protest over this decision, the government today announced a temporary suspension of the cooperation with the US over the case.

It has been widely reported today that the Home Secretary, Sajid Javid, is withdrawing the long-standing objections the UK has had to sending people to the USA where they risk being executed. The USA is the only country in the Americas which still has the death penalty. We continue to document cases in our monthly reports.

The two individuals who are involved are Alexanda Kotey and El Shafee Elsheikh, both from West London.  They were part of a group of individuals from the UK who joined ISIS and allegedly perpetrated some dreadful crimes including beheadings.  They allegedly murdered two US journalists James Foley and Steven Sotloff, British aid workers David Haines and Alan Henning and aid worker and Iraq war veteran Peter Kassig.  Investigations have been continuing for 4 years and the question has arisen of where they should be tried.

The UK government has a long-standing policy of opposing the death penalty abroad in all circumstances.  It has also been active in trying to persuade those countries which continue to use it, to stop.  Amnesty is opposed to the practice as it has a number of serious flaws.  It is ineffective in preventing crime and it is not a deterrent.  Mistakes cannot be put right.  In the case of terrorists, it risks creating martyrs and spawning others who want to avenge the executions.

It is therefore particularly depressing to see our home secretary acceding to the request.  The full text shows that it is because he believes a successful federal prosecution in the US is more likely to be possible because of differences in their statute book and the restrictions on challenges to the route by which defendants appear in US courts.  In his leaked letter to Jeff Sessions, the US Attorney General, he says on the matter of sending them to the States:

[…] All assistance and material will be provided on the condition that it may only be used for the purpose sought in that request, namely a federal criminal investigation or prosecution.

Furthermore, I am of the view that there are strong reasons for not requiring a death penalty assurance in this specific case, so no such assurances will be sought.  From the letter published in the Mail Online [accessed 23 July 2018]

The decision has received widespread criticism.  Alan Howarth, the head of advocacy and programmes, at Amnesty International said:

This is a deeply worrying development.  The home secretary must unequivocally insist that Britain’s longstanding position on the death penalty has not changed and seek cast-iron assurances from the US that it will not be used.

A failure to seek assurances on this case seriously jeopardises the UK’s position as a strong advocate for the abolition of the death penalty and its work encouraging others to abolish the cruel, inhuman and degrading practice.

Other criticisms have come from Shami Chakrabarti, Labour’s shadow Attorney General and Lord Carlile who said on the BBC the decision was extraordinary and:

It is a dramatic change of policy by a minister, secretly, without any discussion in parliament.  It flies in the face of what has been said repeatedly and recently by the Home Office – including when Theresa May was home secretary – and very recently by the highly respected security minister, Ben Wallace.

Britain has always said that it will pass information and intelligence, in appropriate cases, provided there is no death penalty.  That is a decades-old policy and it is not for the home secretary to change that policy.  BBC Today programme 23 July 2018

There is also the question of the use of torture.  Will either or both of them be sent to Guantanamo Bay to receive abusive treatment including water boarding?  Coming so soon after a select committee roundly criticized the government for its role in torture and rendition, this is a surprising and disappointing development.

The full text of the letter can be seen here.

Sources: Amnesty; BBC; the Guardian; Mail on line


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