Fast fashion has taken the world by storm, with brands like Shein and Temu becoming increasingly popular among consumers seeking affordable clothing and other goods. But most times, that comes at a cost.
According to Florida Senator Marco Rubio, both enterprises ship goods to the United States using Uyghur slave labor
“It is past time for the Forced Labor Enforcement Task Force to begin adding entities to the UFLPA exporter list. Private firms and journalists have unearthed compelling evidence that both Shein and Temu are facilitating the entry of goods made with Uyghur forced labor,” said Rubio Tuesday.
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“Given the blatant exploitation of trade loopholes that Shein and Temu regularly demonstrate, and the high probability these companies have facilitated the importation of goods made with forced labor, I urge you to investigate these companies and add them to the exporter list…should they be in violation of federal law,” added Rubio.
The Uyghur Forced Labor Prevention Act (UFLPA), sponsored by Rubio, went into effect in 2021.
The UFLPA compels the US Department of Homeland Security (DHS) to prohibit imports that involve Uyghur slave labor by adding manufacturers, exporters, and other violators to the UFLPA entity list.
According to a report from the House Select Committee on the Chinese Communist Party, Temu and Shein accounted for over 30% of all packages valued under $800 that entered the US in 2022. These staggering numbers highlight the massive scale of their operations and the extent of their influence in the fast fashion industry.
Temu is the US subsidiary of the Chinese e-commerce site Pinduoduo, while Chinese billionaire Chris Xu founded Shein and is now operated by Roadget Business Pte.
Although both companies offer low-priced products and employ social media marketing campaigns, they have different business models. Temu acts as a middleman between factories and consumers, similar to Amazon, while Shein purchases clothes from factories and sells them under their own brand.
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One of the key attractions of Shein and Temu is the sheer number of products they offer. Shein adds up to 10,000 new items to its website every day, while Temu boasts over 200 categories of products. This constant influx of new products caters to the fast fashion industry’s demand for ever-changing trends and encourages consumers to make frequent purchases.
The low prices offered by Shein and Temu come at a high cost for garment workers, particularly those in Southeast Asia. These workers often endure long hours, low pay, and hazardous working conditions, all without proper employment contracts.
The fast fashion industry’s relentless pursuit of trends and the need for large volumes of clothing place immense pressure on garment workers, leading to exploitative practices.
Garment workers frequently work 14 to 16-hour days, seven days a week, and are forced to meet tight deadlines set by fashion brands. Many are unable to refuse overtime, as their basic wages are already extremely low. In some cases, overtime is not even paid at all.
These harsh working conditions not only violate labor rights but also contribute to the perpetuation of a cycle of poverty and exploitation.
The Role of US Labor Laws
Shein and Temu exploit a US shipping provision known as the “de minimis exception” to keep their prices low. This provision waives duty fees for packages with a retail value of less than $800. As a result, Shein and Temu rarely reach the de minimis maximum, allowing them to avoid paying duty fees on most imports to the US.
While companies like H&M; paid $205 million in duty fees in 2022, Shein and Temu paid none. This significant difference in duty fees further contributes to their ability to offer products at such low prices. However, it also raises questions about the fairness and transparency of the system, as it allows companies to bypass regulations and profit from unethical practices.
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The Uyghur Forced Labor Connection
Both Shein and Temu have come under scrutiny for their alleged use of forced labor from the Xinjiang region in China. The US State Department estimates that 12 million Uyghurs, Turkic-speaking Muslims, reside in Xinjiang and are native to the region. The Chinese government has been accused of imprisoning over 1 million Muslims, primarily Uyghurs, in “reeducation camps” since 2017.
These camps have been the subject of intense international criticism, with reports of surveillance, forced labor, and other human rights abuses. Muslims are often sent to these camps for practicing their religion, such as wearing veils or growing beards. The US and the United Nations have classified the situation as a genocide and identified serious human rights violations.
It is estimated that approximately 100,000 Uyghurs and other ethnic minority ex-detainees in China may be working under conditions of forced labor following their detention. This includes the picking of cotton, a key component in the production of clothing. Shockingly, a survey conducted in 2021 found that 16% of cotton clothes in the US contained cotton from Xinjiang.
The Uyghur Forced Labor Prevention Act
In response to the ongoing human rights abuses in Xinjiang, President Joe Biden signed the Uyghur Forced Labor Prevention Act (UFLPA) in December 2021.
This legislation prohibits the importation of goods made in Xinjiang into the US, assuming that such products are made using forced labor. It also provides guidelines for companies to ensure that their products are not made with forced labor.
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However, companies like Shein and Temu exploit the de minimis provision to circumvent the UFLPA. By avoiding duty fees and formal entry documentation, they make it difficult to enforce import bans and collect necessary data to monitor compliance.
This loophole undermines the effectiveness of the UFLPA and perpetuates the cycle of exploitation in the fast fashion industry.
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