A major supplier for the wildly popular Labubu toys is facing serious allegations of labour exploitation, including the employment of teenagers without legal safeguards, according to a new investigation.
Investigation Uncovers Systemic Issues
The report from New York-based NGO China Labor Watch (CLW) focuses on the Shunjia Toys factory in Jiangxi province, China. Over three months in 2025, investigators interviewed more than 50 employees, three of whom were under 18. All were working solely on producing the furry Labubu characters.
The investigation claims the factory employed 16- and 17-year-olds but failed to provide the special protections mandated by Chinese law for young workers. These minors were reportedly placed on standard assembly lines with the same demanding production targets as adults.
"The underage workers also generally did not understand the nature of the contracts they signed, and had no clear concept of their legal status when asked," the CLW report stated.
Blank Contracts and Excessive Hours
CLW's findings extend beyond the issue of underage labour. The NGO alleges workers were routinely made to sign blank labour contracts. Employees were told to fill in personal details only, leaving sections on working conditions, salary, and social insurance blank and unexplained. Workers were given "no more than five minutes" and told not to read other parts of the contract.
To meet the intense global demand for Labubu toys, workers faced unrealistic targets. Teams of 25-30 people were required to assemble at least 4,000 units daily. While Chinese law caps monthly overtime at 36 hours, CLW found workers frequently exceeded 100 additional hours per month.
Shunjia Toys' official capacity is 12 million toys annually, with plans to expand. However, CLW's interviews suggested output was far higher, with two teams alone estimated to produce over 24 million units yearly.
Broader Implications for Global Brands
Pop Mart, the Hong Kong-listed Chinese company behind Labubu, has seen phenomenal success. The "Monsters" line, which includes Labubu, generated 4.8 billion yuan (£511m) in sales in just the first half of 2025. CEO Wang Ning said the firm was on track for 20 billion yuan in annual revenue.
In a statement, a Pop Mart spokesperson said the company takes worker welfare seriously, conducts regular audits, and is investigating the claims. "Should the findings be substantiated, we will firmly require the relevant partners to implement comprehensive corrective actions," the spokesperson said.
CLW's executive director, Li Qiang, argued that current oversight is insufficient. He called for Pop Mart to establish accessible grievance mechanisms for workers, improve transparency, and disclose its supply chain structure to enable meaningful oversight.
The allegations highlight the ongoing challenges for Chinese consumer brands expanding globally, as they face increasing scrutiny to uphold higher labour standards throughout their supply chains.
