A senator is sounding the alarm about China’s fashion retailer Shein, alleging it is using forced labor in its clothing supply chains and is lobbying to dismiss the claim.
“I write to make you aware of actions by Shein, an apparel company founded in China that profits from Uyghur slave labor. Shein is hiring D.C. lobbyists to protect the trade loopholes that allow it to avoid accountability. No one should be fooled by Shein’s efforts to cover its tracks. Action is still needed to ensure that the Uyghur Forced Labor Prevention Act (UFLPA; P.L. 117- 78) is fully implemented and enforced and that Shein’s trade tricks are eliminated,” said Sen. Marco Rubio (R-Fla.) in a June 8 letter (pdf) to his colleagues.
President Joe Biden signed the Uyghur Forced Labor Prevention Act (UFLPA) into law in December of 2021. The law, which bans imports from China’s Xinjiang region unless the importer can prove that the products were not produced using forced labor, went into effect in June of 2022.
Rubio noted that Shein is one of the largest “fast fashion” retailers in the world, valued at $66 billion. The company churns out over 6,000 new designs on an average day.
Yet, according to the lawmaker: “Shein is able to offer this array of products at rock-bottom prices not because of any particular competitive advantage, but because it steals intellectual property, infringes copyrights, exploits U.S. trade law, and uses fabric linked to Uyghur slave labor.”
The letter cited laboratory testing conducted for Bloomberg News that found two cases of garments shipped by Shein to the United States in 2022 “were made with cotton from China’s Xinjiang region.” The CEO of the lab that conducted the analysis also concluded that “it is a typical sample from Xinjiang, China.”
The document further raised concern about how Shein had succeeded in avoiding punishment and scrutiny under the UFLPA.
“Shein products have so far avoided punishment and scrutiny. In part, that is because Shein ships small packages direct-to-consumer using a trade loophole known as de minimis entry,” it reads.
The de minimis entry level is the value below which imports are allowed to enter the United States with minimal government review and without duty.
Shein engaged its first Washington lobbyists from Akin Gump and Hobart Hallaway and Quayle, two renowned Washington law firms, last year to help with the rebranding push. Nevertheless, the campaign is still in its early phases. According to reports, lobbyists are working on “general education” on Shein’s business for decision-makers as well as tax and trade problems pertinent to its operation.
The company has also relocated its headquarters from China to Singapore.
Rubio calls the moves an effort to “protect its tax and trade loopholes.”
The Epoch Times reached out to Shein for comment.
Previous Efforts to Address Ties to Slave Labor
In May, a group of U.S. lawmakers called for Chinese fast fashion brand Shein to be investigated over claims of using Uyghur forced labor in part of its supply chain.
A letter (pdf) to the Chair of the U.S. Securities and Exchange Commission came amid speculation that the company could sell its shares in the United States with an initial public offering.
Twenty Republican and Democratic lawmakers signed the letter, which claimed “credible allegations of using underpaid and forced labor.”
Additionally, it demands that before Shein can be permitted to sell shares in the United States, the Securities and Exchange Commission (SEC) must compel Shein to independently audit and confirm “that the company does not use Uyghur forced labor.”
In another development, U.S. senators in February wrote a letter to the chief executive of Shein, raising concerns about whether the company made use of cotton sourced from China’s Xinjiang region.
The letter asks Shein to answer certain questions within 30 days of receipt of the letter, which includes whether the cotton fibers used to manufacture its garments are sourced from Xinjiang; how the firm ensures that garments are produced without forced labor; the number of supplier audits the firm has conducted; and so on.
“Forced labor products, sneaking into America through our lax de minimis laws, should be stopped at the border and never make their way to American shelves. @SHEIN_Official needs to be transparent about the reported ties between their supply chains and Chinese slave labor,” Cassidy said in a tweet on Feb. 9.
Naveen Athrappully contributed to this report.
