GOP Senators Request Biden Administration to Conduct Investigation on Chinese Apps
A recent request from Republican senators has urged the Biden administration to investigate two major Chinese fashion retail apps, Temu and Shein. Sens. Tom Cotton and Marco Rubio have raised concerns over forced labor, human rights abuses, and intellectual property theft associated with these apps. In a letter to President Joe Biden, Sen. Cotton expressed concerns about Temu’s alleged unfair trade practices, intellectual property theft, and human rights abuses. He emphasized that Temu’s goods are cheap not because of fair competition but because of China’s combination of intellectual property theft, government subsidies, and human rights abuses.
Temu is an online retailer owned by the Chinese e-commerce giant PDD Holdings. It quickly gained popularity in the United States since its launch in 2022 due to its significantly low prices and direct shipping to customers. The success of Temu, along with Shein, is attributed to a U.S. trade exemption called the de minimis rule, which allows online retailers to ship small packages worth $800 or less directly to shoppers without paying tariffs. This exemption enables websites selling cheap Chinese goods to evade taxes, fees, and regulations banning forced labor in the consumer product supply chain.
Sen. Cotton argued that Temu poses a threat to American producers, investors, online retailers, and every American’s personal privacy, similar to other invasive Chinese apps like TikTok. He called for an end to the de minimis loophole and requested information regarding Temu’s connection to the Chinese Communist Party (CCP) and its involvement in stealing and counterfeiting American products.
In another letter, Sen. Rubio asked Homeland Security Secretary Alejandro Mayorkas to investigate Temu and Shein for potentially violating the Uyghur Forced Labor Prevention Act (UFLPA). This act prohibits imports from China’s Xinjiang region unless companies can prove their products were not produced with forced labor. Sen. Rubio expressed concerns about the lack of companies added to the UFLPA entity list since the law was signed more than two years ago. He called on Secretary Mayorkas to add Temu and Shein to the entity list if they violated the UFLPA.
Last year, a report from the House Select Committee on the CCP accused Temu of using forced labor. It highlighted Temu’s lack of systems to ensure compliance with the UFLPA, suggesting that shipments from Temu containing products made with forced labor regularly enter the United States in violation of the law. The report also revealed that Temu and Shein likely represent more than 30% of all de minimis shipments into the United States.
Shein has faced its share of controversies as well. Bloomberg reported in 2022 that Shein allegedly used cotton from forced labor in Xinjiang. The United States has already banned cotton importation from Xinjiang due to the “horrific abuses” against the Uyghurs. Additionally, Shein has faced lawsuits from competitors and designers for copyright violations and accusations of racketeering activity.
The request for an investigation into these Chinese fashion retail apps comes after a report from the U.S.-China Economic and Security Review Commission highlighted concerning practices by Temu and Shein, including forced labor, intellectual property rights violations, and exploitation of trade loopholes.
The Epoch Times reached out to Shein and Temu for comment but did not receive any replies.
The concerns raised by these senators highlight the need for a thorough investigation into Chinese apps like Temu and Shein. The potential violations of intellectual property rights, human rights abuses, and forced labor cannot be ignored. It is essential to protect American producers, investors, online retailers, and personal privacy while ensuring fair trade practices and adherence to laws banning forced labor. The Biden administration must carefully consider these requests and take appropriate action to address these concerns surrounding Chinese apps.
