The tariffs introduced by the Trump administration will not force fast-fashion giant Shein out of the US market, according to an interview with AFP where executive chairman Donald Tang shared his thoughts.
The leader of the online platform, facing criticism regarding its ecological impact and claims of human rights abuses, also affirmed that the organization does not employ forced labor.
'Customers not affected'
"Tang stated that they aren’t concentrating on customs policies," regarding the fresh round of U.S. import tariffs, while commenting during his trip to France earlier this week.
He stated they would discover a method to deliver the products," adding that Shein's "business strategy" had helped the firm navigate previous international trade disruptions such as those caused by the coronavirus pandemic.
This time around, though, China finds itself squarely within Washington's sights, facing an extra 20 percent tariff on goods brought into the United States from the nation.
The Trump administration has likewise raised questions about whether parcels valued at under $800 from imports will keep their duty-free status.
Shein—a company established in China but currently based in Singapore—and Temu have capitalized on this practice for years, facilitating the import of tens of billions of dollars' worth of goods into the U.S. through their extensive network of Chinese manufacturing facilities.
Tang stated that regardless of what occurs, "we will strive to ensure that the customers' interests and their overall experience remain unaffected," although he did not provide any specific details.
'No forced labour'
Similar to other key figures in the textile industry, Shein frequently faces accusations of taking advantage of members from the Uighur minority in the cotton fields and factories located in the northwestern Chinese area known as Xinjiang.
The policy adheres to zero tolerance regarding forced labor, as stated by Tang to AFP. "We do not accept it whatsoever, without any exceptions," he emphasized.
He mentioned that the firm adhered to a code of conduct which was "completely, one hundred percent consistent with the International Labour Organization Convention," and this needed to be signed by all suppliers.
Once the agreements are established, "we bring in internationally recognized auditors who make surprise visits to the factories," Tang explained.
David Hachfeld from the advocacy organization Public Eye, who released an inquiry into Shein, stated that these steps were insufficient.
"Most workers typically logged 75 hours per week in manufacturing," Hachfeld stated, adding that they had “about one and a half free days each month.”
Amnesty International has similarly urged Shein to increase transparency.
Any company with operations in Xinjiang should set up human rights checks, the campaign group has argued.
"If Shein hasn’t taken this critical measure, it should halt its activities in Xinjiang," Amnesty stated via an emailed response to AFP.
On the contrary, if the business is certain it has removed these risks, it should openly reveal how this verification was conducted.
Market flotation
Numerous investors anticipate that Shein will list on a prominent international stock exchange later this year, with London being considered the top contender for the location.
However, Tang was not revealing any details regarding the plans — aside from mentioning that an offering would bolster confidence.
He told AFP that they aimed to adopt the global standard for accountability and transparency, making openness a necessity rather than an option, with the hope of fostering 'public trust, essential for our sustained development.'
The chairperson of the United Kingdom's Parliamentary Business and Trade Committee stated in January that both they and other committee members felt "shocked" by Shein's insufficient disclosure regarding the origins of their merchandise.
Tang mentioned that the firm has addressed the inquiries from Members of Parliament subsequently.
Recently, the company declared that it plans to invest 200 million euros ($220 million) in European initiatives focused on circular economy and recycling. This move aims to enhance their public image.
"Tang mentioned that they have been interacting with various firms in Paris and several French cities, as well as conversing with leading technologists in the field," he stated — without specifying potential collaborators.
When it comes to European environmental organizations, Shein is expected to encounter significant resistance.
In 2023, Friends of the Earth estimated that Shein's activities--which they claimed introduce approximately 7,200 fresh products daily on average--produce emissions totaling between 15,000 and 20,000 tons of CO2 each day.
The European Union along with member states such as France is already considering regulations aimed at reducing waste generated by major players in the fast-fashion industry.
