US Lawmakers Press Shein and Other Brands Over Forced Chinese Labor Allegations

Strategic Insights -

A group of US lawmakers has reached out to several prominent clothing brands, including Shein and Adidas, over allegations that they use forced Chinese labor or material from regions where such conditions allegedly occur. The lawmakers are asking the companies to provide information about their supply chains and compliance with US law, particularly the Uyghur Forced Labor Prevention Act. Meanwhile, a separate bipartisan group of lawmakers has urged securities regulators to require Shein to attest that it does not use forced Chinese labor as a condition of a public offering.

Key Takeaways:

  • US lawmakers have sent letters to the CEOs of Adidas, Nike, Shein, and Chinese shopping app Temu, asking about their supply chains and compliance with US law.
  • The lawmakers cited witness testimony that alleged Nike and Adidas might be sourcing materials from China's Xinjiang region, in possible violation of US law.
  • Shein has denied using suppliers from the Xinjiang Region, stating that it has "zero tolerance" for forced labor and adheres to a strict code of conduct.
  • A separate bipartisan group of lawmakers has urged securities regulators to require Shein to attest that it does not use forced Chinese labor as a condition of a public offering.
  • The Uyghur Forced Labor Prevention Act prohibits the use of goods made with forced labor in the Xinjiang region, where human rights groups say China's Muslim-majority Uyghurs are subjected to mass incarceration and forced labor.

Statistics:

  • 24 members of the House of Representatives signed a letter urging securities regulators to require Shein to attest that it does not use forced Chinese labor.
  • Shein plans to execute an Initial Public Offering (IPO) before the end of the 2023 calendar year.
  • The Uyghur Forced Labor Prevention Act was enacted in December 2021.

Sources:

  • [1] "US lawmakers ask Shein, Adidas, Nike about Xinjiang supply chains"

+ AFP source, no date

  • [2] "Letter from 24 House members to SEC Chairman, May 1, 2023"

+ No source, no date, no name

  • [3] Shein spokesperson statement, no date or source