Congressional members want Chinese clothing company to provide proof of not using forced labor

Reports reveal that Shein, the world’s largest fast-fashion company, is preparing for a U.S. Initial Public Offiering (IPO) by the end of 2023.

However, credible allegations have been made against the Chinese company regarding underpaid and forced labor in the Xinjiang Uyghur Autonomous Region (XUAR).

On Monday, U.S. Reps. Jennifer Wexton of Virginia and Jose Rose of Tennessee led 22 colleagues in a letter requesting the Securities and Exchange Commission (SEC) to require Shein to certify that their products do not use Uyghur forced labor. The representatives demand transparency and seek independent verification that the company does not use forced labor before it is registered on the U.S. exchange.

“We strongly believe that the ability to issue and trade securities on our domestic exchanges is a privilege, and that foreign companies wishing to do so must uphold a demonstrated commitment to human rights across the globe,” the members wrote.

Chris Iacovella, president and CEO of the American Securities Association, said the association strongly supports the bipartisan effort “to protect human rights and it’s past time for them to stop allowing CCP-controlled companies like this to access our markets.”

Wexton is the sponsor of the bipartisan Uyghur Forced Labor Disclosure Act, which would enhance the scrutiny of products sourced from forced labor by requiring publicly-traded companies doing business in Xinjiang to certify whether imports of goods and materials that originate in or are sourced in part from the region are tainted by forced labor.