US lawmakers push SEC to order audit of Shein ahead of planned IPO, over Uygur forced labour fears
- The US lawmakers want the SEC to order an independent audit of Shein to verify the company does not use Uygur forced labour as a precondition for a US IPO
- Rights groups and governments have accused China of forced labour and internment of Uygurs, a mainly Muslim ethnic minority, in Xinjiang - a charge Beijing denies
A bipartisan group of two dozen US representatives was calling for the Securities and Exchange Commission (SEC) to halt the initial public offering of Chinese-founded fast-fashion giant Shein until it verifies it does not use forced labour, according to a letter seen by Reuters.
The US lawmakers want the SEC to mandate Shein to independently audit and verify “that the company does not use Uygur forced labour as a condition of being registered to issue securities in the United States,” the letter said.
Sources have said Shein is eyeing an IPO in the US this year.
The rapid growth of the cheap fashion firm is attracting political scrutiny in several countries where leaders say the retailer is threatening home-grown businesses.
A 2022 Bloomberg report found that its garments contained cotton linked to China’s Xinjiang region. Rights groups and governments have accused China of forced labour and internment of Uygurs, a mainly Muslim ethnic minority, in Xinjiang. Beijing denies any rights abuses.