Shein, a popular online fashion retailer, has been under scrutiny for its questionable business practices. One of the concerns is that the company has been accused of copying designs and using cotton from Xinjiang, a region in China where U.S. officials claim that the government has violated the rights of Uyghur people. With Shein’s anticipated initial public offering, the spotlight on the company has intensified.
Although the bill introduced on Thursday doesn’t explicitly mention Shein, it is believed to be targeting the company. Representative Blumenauer stated that Shein is the prime example of a company that has exploited the de minimis loophole the most. He questions the affordability of Shein’s products, asking if the cost savings to consumers are worth the potential ethical and environmental consequences. He emphasizes the importance of respecting human rights, the environment, and product safety, even if it means paying slightly higher prices.
In response to the allegations, Shein released a statement asserting their “zero tolerance for forced labor” and their compliance with the Uyghur Forced Labor Prevention Act. They claim to have implemented a system consisting of a code of conduct, independent audits, tracing technology, and third-party testing to ensure ethical practices. Additionally, they deny having any manufacturers in the Xinjiang region. Shein also states that they have been compliant with U.S. tax and customs laws since entering the U.S. market in 2012.
This bill is part of a broader trend of increased scrutiny on Chinese companies by the U.S. government. Another bill introduced on Wednesday aims to further regulate companies with ties to China, including Chinese companies being barred from using the de minimis rule and stricter information requirements for packages entering the United States. Lawmakers have been questioning various companies, such as TikTok, about their ties to China, and other companies like Temu have faced similar scrutiny.
However, these bills still have a long way to go before they become law. They need to be considered separately in the House and Senate, and their passage is uncertain.
In recent months, Shein has been trying to improve its image by emphasizing its sustainability practices and collaborations with independent designers. These are areas where they face significant questions and criticism.
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