Given forced labor evidence, will Shein be allowed on on the U.S. stock exchange?
As Shein confidentially files for a U.S. initial public offering, questions about forced labor in its supply chain resurface, casting a shadow over the much-anticipated public debut. The China-based e-commerce giant, valued at a potential $90 billion, faces scrutiny from lawmakers and activists, reigniting demands for transparency regarding its manufacturing practices.
Calls for accountability
Critics have long voiced concerns that Shein, known for its low-priced apparel and home goods, may be linked to Uyghur forced labor, particularly in China’s Xinjiang region. The company, which manufactures most of its merchandise in China, denies such allegations, but lawmakers remain unconvinced. Regulatory hurdles loom large, with the U.S. Securities and Exchange Commission (SEC) expected to closely examine Shein’s supply chain practices before granting approval for the IPO.