Shein, the Chinese fast fashion retailer, has drawn the ire of certain US lawmakers after the company confidentially filed last week to list in the US.
Rep. Blaine Luetkemeyer, R-Mo, posted a video statement Tuesday warning the Securities and Exchange Commission that Shein “warrants extreme caution from regulators, customers and investors.”
“Accessing US markets and capital is a privilege and we rely on the SEC to root out undeserving companies,” he said. “I sincerely hope the officials at the commission will review Shein to ensure American capital does not fund crimes against humanity.”
Luetkemeyer is a member of the GOP-created and controlled House Select Committee on the Chinese Communist Party.
Another member of the committee, Mike Gallagher, R-Wisc, echoed Luetkemeyer’s views, according to reporting from CNBC. Gallagher also expressed his support from reforming the de minimis provision, which allows imports valued less than $800 to skirt import duties.
The committee is investigating Shein over its use of the de minimis provision, as well as concerns over the use of forced labor, allegations which Shein has denied.
On the other side of the aisle, Rep. Jennifer Wexton, D-Va said last week that Congress “must take action to hold Shein accountable” on the issue of forced labor.
In 2021, the US banned the import of cotton and other products made in Xinjiang, China, due to evidence of forced labor, torture and genocide against Uyghur Muslims in the region.
Meanwhile, Shein is poised to become the most valuable China-based company to go public since Didi Global's 2021 listing at $68 billion. It could start trading in the US as soon as next year.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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