Chinese fast fashion giant Shein reported finding two instances of child labor within its supply chain last year, as the company intensifies its oversight of its manufacturers. Shein temporarily halted orders from the involved suppliers, only resuming business after they implemented stricter measures to address the issue. This disclosure is part of Shein’s 2023 sustainability report, released as the company prepares for a potential stock market listing.

The company has faced criticism for the working conditions in its supply chain factories. In response, Shein stated that both child labor cases were resolved swiftly, with steps including terminating contracts with underage employees, ensuring payment of outstanding wages, arranging medical checkups, and facilitating repatriation to their parents or legal guardians. After these remediation measures were completed, the contract manufacturers were allowed to resume business.

Shein has since tightened its supplier policies, making any violations related to child labor or forced labor grounds for immediate contract termination. The two cases were uncovered in the first nine months of 2023, with none reported in the final quarter of the year.

This comes as Shein reportedly filed initial documents for a potential stock market listing in London earlier this year. In June, U.S. Senator Marco Rubio expressed concerns in a letter to the then-UK Chancellor Jeremy Hunt, highlighting “grave ethics concerns” and Shein’s “deep ties to the People’s Republic of China.” Rubio accused the company of benefiting from “slave labor, sweatshops, and trade tricks.” Shein responded by reiterating its zero-tolerance policy for forced labor and its commitment to human rights, emphasizing its stringent oversight of its supply chain.

The report followed a Swiss advocacy group, Public Eye, which revealed that excessive overtime remains common for many workers in Shein’s supply chain.