But Schein has faced scrutiny over some of her business practices, such as copying designs and using cotton for clothes from China’s Xinjiang region, where U.S. officials say Uyghurs have been mistreated by the government. Investors are expecting an initial public offering from Shin this year, which has only increased questions about the company.
Thursday’s ruling does not name the company, but “Shane is probably the clearest example of a company that has taken advantage of de minimis loopholes,” Mr. Blumenauer said.
“There may be modest financial savings for consumers, but at what cost?” He talked about Shin’s affordable product line. I think we have decided to respect the environment, human rights and product safety, even if it costs a few cents more.
Shen said in a statement that he has “no tolerance for forced labor” and has created a system to enforce the Uyghur Forced Labor Prevention Act. The system includes “a code of conduct, independent audits, robust tracking technology and third-party testing.” We don’t have any manufacturers in the Xinjiang region,” said a spokesman for Shin.
Since entering the US market in 2012, Shane has been complying with US tax and customs laws.
Background: The US is becoming increasingly critical of Chinese companies.
The second bill, unveiled Wednesday, is the latest sign that the U.S. government wants to impose more controls on companies with ties to China.
That legislation, sponsored by Bill Cassidy, Republican of Louisiana, and Representative Tammy Baldwin, Democrat of Wisconsin, urges Chinese companies to stop using de minimis rules and require more information about packages entering the United States.
In March, US lawmakers questioned TikTok’s CEO for five hours about the platform’s relationship with China. Other companies, such as e-commerce retailer Teemu, have also faced scrutiny over their ties to the country. This month, Mr. Rubio sent a letter to other lawmakers warning them of Sheen’s business practices and lobbying efforts.
In the year In 2016, when the rule was last adjusted, “people were less concerned about China then than they are now,” said William Reinsch, a senior adviser at Kelley, Dre & Warren and president of the National Foreign Trade Council.
What’s next: The bills are far from being passed.
The two bills must be considered separately in the House of Representatives and the Senate and may face a long road to approval.
Meanwhile, Shane has been on a roll in recent months, talking more about his sustainability practices and his work with independent designers — two areas where he faces a lot of questions.