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Daily Skimm: Shein is in hot water as US lawmakers try to verify the fast-fashion company doesn't depend on forced labor.

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This photo taken on November 10, 2022 shows a woman walking inside the first permanent showroom of Chinese online fast fashion giant Shein, during a media preview in Tokyo.

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Congress is pressing Shein over human rights concerns.

How did all of this unfold?

This week, a bipartisan group of 22 US lawmakers wrote a letter to the SEC. In it, they called on the agency to require the Chinese company to confirm that it doesn't use Uyghur forced labor. Reminder: Last summer, the US banned all imports from the Xinjiang region over forced labor concerns. Since it was founded in 2008, Shein has become a go-to fast fashion app thanks to TikTok and influencers' #Sheinhaul(s). Gen Zers shopping on a budget found the company's low prices especially appealing. Now, lawmakers want the SEC to look behind the seams of Shein's business practices.

Why now?

The gov is checking its shopping cart one more time before Shein is expected to go public later this year. Last month, the US-China Economic and Security Review Commission (USCC) sounded an alarm against Chinese e-commerce sites like Shein and its rival, Temu, after a report found the companies were possibly using forced labor, trade loopholes, or intellectual property theft. This week’s letter shows Congress’s urgency in taking a closer look at Shein as its popularity climbs in the US. The company, which was valued at $100 billion in 2022, is now worth more than H&M and Zara combined.

Should I put shopping on pause?

You may want to hold on to your mesh bodysuit. It’s not clear how Shein produces its clothes. It reportedly has over 6,000 factories in China with most of them located in the southern Guangdong province. A Shein spokesperson said the company doesn’t have suppliers in the Xinjiang region, adding it has “zero tolerance” for forced labor. Meanwhile, Congress's push is reigniting the conversation around fast fashion, which critics say contributes to environmental waste.

theSkimm

Inflation has made the cost of everyday purchases go up, but fast fashion tycoons like Shein have made shopping for trendy pieces possible. Now, lawmakers are searching for the real cost behind Shein’s garments.

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