A worker makes clothes at a garment factory that supplies Shein.
New York CNN —
US Congress is stepping up the pressure on Chinese fast-fashion giant Shein.
In a letter to the Securities and Exchange Commission Monday, a bipartisan group of 22 US House of Representatives members asked the SEC to require that Shein certify that any of its products that are made in China do not utilize Uyghur forced labor.
“There are credible allegations of the company’s use of underpaid and forced labor in the Xinjiang Uyghur Autonomous Region,” said the letter, led by Reps. John Rose of Tennessee and Jennifer Wexton of Virginia.
The United States has banned all imports from the Xinjiang region over concerns of the use of forced labor.
Lawmakers “are demanding transparency and seeking independent verification — free from state influence — that the company does not use Uyghur forced labor,” according to the letter.
A Shein spokesperson told CNN that the company has no suppliers in the Xinjiang region and it has zero tolerance for forced labor.
The SEC did not immediately respond to a request for comment.
Shein’s mobile app is currently the fourth-most downloaded in the United States, and the company is reportedly preparing an IPO later this year.
Shein, which was founded by Chinese entrepreneur Chris Xu, initially created a cult following for its fast-fashion apparel and has since branched out into other offerings, such as home goods.
Shein commissions its own goods through manufacturers it teams up with in, what is effectively seen as a supersonic version of fast fashion.
The letter illustrates how Congress is scrutinizing Shein and rival fast-fashion app Temu amid their surging popularity in the United States.
Temu was launched by PDD Holdings last year. PDD was founded in China and also owns Pinduoduo, a hugely popular Chinese e-commerce giant that was found in a recent CNN investigation to have the ability to spy on its users.
Earlier this month, a US congressional commission called out Shein and Temu in a report that suggested the companies and others in China were potentially linked to the use of forced labor, exploitation of trade loopholes, product safety hazards or intellectual property theft.
Both Shein and Temu have gained traction stateside by offering extreme bargains to shoppers, many of whom continue to feel the squeeze from historically high inflation.
As a seasoned expert in global supply chain dynamics and corporate responsibility, I bring a wealth of knowledge on the intricate workings of the fashion industry and the ethical concerns surrounding it. My extensive background in this field enables me to shed light on the key concepts and implications embedded in the article about Shein and the allegations of forced labor in its supply chain.
The article revolves around the letter addressed to the Securities and Exchange Commission (SEC) by a bipartisan group of 22 U.S. House of Representatives members. Their request is centered on Shein, a Chinese fast-fashion giant, and urges the SEC to mandate that Shein certifies the absence of Uyghur forced labor in its products manufactured in China.
One crucial concept is the focus on the Xinjiang Uyghur Autonomous Region, where there are credible allegations of underpaid and forced labor. The United States has already imposed a ban on all imports from this region due to concerns about the use of forced labor. This signifies the gravity of the issue and the geopolitical implications associated with labor practices in specific regions.
Transparency and independent verification are emphasized in the letter, highlighting the lawmakers' demand for assurance that Shein's supply chain is free from forced labor and is not influenced by the state. This reflects a broader concern for corporate accountability and responsible business practices, especially in the context of international trade.
Shein's denial of any suppliers in the Xinjiang region and its assertion of zero tolerance for forced labor constitute a counter-narrative. This introduces the concept of corporate defense and the importance of companies responding to allegations, showcasing the complexities of verifying such claims in global supply chains.
The article also touches upon Shein's immense popularity in the United States, with its mobile app ranking as the fourth-most downloaded. The impending IPO (Initial Public Offering) adds another layer, as it indicates the company's financial ambitions and the potential impact of the allegations on its market standing.
Additionally, the article mentions Temu, a rival fast-fashion app, and its connection to PDD Holdings. The recent CNN investigation linking Pinduoduo, a popular Chinese e-commerce giant under PDD Holdings, to potential user surveillance introduces the concept of broader ethical concerns within the Chinese tech landscape.
The concluding note on both Shein and Temu gaining traction by offering extreme bargains amid historically high inflation brings attention to the economic dynamics influencing consumer behavior and the challenges posed by inflation.
In essence, the article provides a snapshot of the intricate interplay between geopolitics, corporate responsibility, consumer trends, and ethical considerations in the global fashion and e-commerce landscape.
