Press Releases

Luetkemeyer Calls on SEC to Prevent Shein from Going Public

Evidence of Shein’s reliance on forced labor warrants maximum scrutiny and forbiddance from US exchanges.

Today, Congressman Blaine Luetkemeyer (MO-3), Chairman of the Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions and a member of the House Select Committee on the Chinese Communist Party, released a formal address calling on the SEC to apply maximum scrutiny in its review of Shein’s IPO application. 

Watch the full address HERE.

Background: Last year, Bloomberg reported on forensic evidence connecting Shein’s cotton to a Chinese region notorious for government-operated forced labor camps. When asked, Shein didn’t dispute Bloomberg’s findings.

Recognizing the overwhelming evidence, the US banned imports from the region, causing many companies to cut ties with the CCP or at least prove they are not using slaves.

Shein, on the other hand, exploits a loophole, shipping individual orders under the radar to avoid triggering transparency requirements. Other retailers pay import duties and undergo vetting of shipments to affirm they are following the law. Shein goes out of its way to avoid it.

The Select Committee on the Chinese Communist Party recently released a report showing Shein paid zero import duties last year and managed to avoid submitting data that could blow the cover on a nefarious business model.