Photo credit: Melissa Goh / Tech in Asia
A US agency is urging the US Congress to tighten the clamps on Shein and Temu, two ecommerce firms that originated from China and have seen a “rapid increase” in market share in the world’s largest economy.
In a public brief, the US-China Economic and Security Review Commission (USCC) alleged that Shein and Temu have repeatedly failed to adhere to local laws and regulations, giving them an unjust advantage over homegrown companies.
Tech in Asia has reached out to both firms for comments.
The USCC emphasized Shein’s alleged use of cotton sourced from Xinjiang – an act that would violate the Uyghur Forced Labor Prevention Act in the US. The agency suggested that other firms may have been following in Shein’s footsteps in producing cotton apparel.
In March, a campaign called Shut Down Shein was launched in the US against Shein.
At the time, a Shein spokesperson told Tech in Asia that “Shein proudly provides customers with on-demand and affordable fashion, beauty, and lifestyle products lawfully and with full respect” for the communities it deals with.
The report also suggests that Temu, the sister company of China’s Pinduoduo, has been following in Shein’s footsteps to win over American users. The USCC noted that 235 complaints had been lodged with the Better Business Bureau (BBB) against Temu in the last year.
See also: Why SEA should watch out for Shein’s top rival Temu
Other concerns the USCC raised include the climate and environmental impact Shein and Temu’s operations wreak and their alleged avoidance of tariffs and customs inspections by shipping directly to users.
Editing by Thu Huong Le and Arpit Nayak
(And yes, we’re serious about ethics and transparency. More information here.)
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