Hongkong - Chinese fast fashion giant Shein has revealed that it found two cases of child labor in its supply chain last year, prompting the company to tighten its scrutiny of the firms that produce its clothing, reported BBC.

The company reported that it temporarily suspended orders from the suppliers involved and did not resume business with them until they had implemented measures to address the issue.

The disclosure comes from Shein's 2023 sustainability report, as the company is reportedly preparing to go public by selling shares on the stock market.

Shein has faced criticism for the working conditions in the factories within its supply chain.

"Both cases were resolved swiftly, with remediation steps including terminating contracts with underage employees, ensuring the payment of any outstanding wages, arranging medical checkups, and facilitating repatriation to parents/legal guardians as needed," Shein stated.

"Following appropriate remediation, the contract manufacturers were permitted to resume business."

The company has since tightened its supplier policies, making any violations related to child labor or forced labor grounds for immediate contract termination.

Shein noted that the two cases were discovered in the first nine months of 2023, with no further incidents reported in the last quarter of the year.

This development comes as the company lays the groundwork for a potential stock market listing. The BBC understands that Shein filed initial documents for a London listing earlier this year.

In June, Marco Rubio, a prominent Republican on the US Senate Intelligence Committee and a close ally of Donald Trump, wrote to then-UK Chancellor Jeremy Hunt, warning him about "grave ethics concerns" and Shein’s "deep ties to the People’s Republic of China."

“Slave labour, sweatshops, and trade tricks are the dirty secrets behind Shein’s success,” Mr. Rubio wrote in his letter to Mr. Hunt.

In response, a spokesperson for the company stated: "Shein has a zero-tolerance policy for forced labour, and we are committed to respecting human rights. We take visibility across our entire supply chain seriously, and we require our contract manufacturers to only source cotton from approved regions."

This statement followed a report by the Swiss advocacy group Public Eye, which highlighted that excessive overtime remained a common issue for many workers in Shein's supply chain.

Shein responded to the report by telling the BBC that it was "working hard" to address the concerns raised by Public Eye and had made "significant progress on enhancing conditions."

Shein, known for its rapid production and low-cost fashion, continues to expand its global reach while addressing these challenges in its supply chain.