NEW YORK: Republican attorneys general from 16 US states asked the Securities and Exchange Commission to audit China-founded fast-fashion retailer Shein’s supply chain for the use of forced labor ahead of its potential initial public offering.
Amid rising friction between Washington and Beijing, the letter, sent to the SEC last week, added to pressure on Shein as China hawks in Congress target Chinese firms that do not align with US foreign policy goals.
Shein, which sells US$7 dresses and US$5 home goods in more than 150 countries, has moved its headquarters to Singapore but manufactures most of its products in China.
The letter urged the SEC to ensure that Shein and other foreign companies listed on US exchanges verify through independent audits that they comply with US laws that prohibit imports made with any forced labor.
“We have zero tolerance for forced labor, and no contract manufacturers in the Xinjiang region. We will continue to engage with US federal and state officials to answer their questions,” a Shein spokesperson said.
Shein declined to comment on its IPO plans.