中國電商在美發展的政治天花板 (Nikkei Asia)

• e-retailer 零售電商
• scrutiny 仔細審視
• bipartisan 兩黨的、跨黨派的
• fash-fashion 快時尚
• forced labor 強迫勞動
• manipulation 操縱
• a slew of 許多
• outpace 超越
• incorrigible 屢勸不聽的、無法教化的
• skirt the law 迴避法律
• testimony 作證
• hearing 聽證會
• loophole 漏洞
• infringement 違反
• abet 教唆、慫恿
• elimination 消除

Shein and other e-retailers have become the latest China-linked companies to face the prospect of restrictions in the U.S., as Congress ramps up scrutiny of their labor rights and intellectual property practices.

The bipartisan U.S.-China Economic and Security Review Commission (USCC) recently released a report on Chinese e-commerce companies, with a particular focus on fast-fashion e-retailer Shein, detailing allegations about forced labor and violation of intellectual property rights.

The criticism could intensify tensions between Beijing and Washington, following the U.S. sanctions against Huawei Technologies over security concerns and the push to block social media platform TikTok amid worries about Chinese government manipulation.

Shein, which sells low-priced apparel in more than 150 markets, is a favorite of young shoppers, rolling out a slew of new products daily. It has outpaced popular European fast-fashion brands like Zara and H&M in the U.S., according to the report.

But Shein has faced criticism over poor working conditions at suppliers' factories as well as repeated problems with copyright infringement.

Shein's operating company, now based in Singapore, is eyeing an initial public offering in the U.S. A bipartisan group of American lawmakers has sent a letter to the Securities and Exchange Commission urging it to block the IPO until the company can certify that it is not using forced labor in the Xinjiang region of China.

The Uyghur Forced Labor Prevention Act, which took effect in the U.S. last June, essentially bans imports of products made in Xinjiang, home of the Uyghur ethnic group. Shein has said it requires suppliers to buy cotton from approved regions such as Australia, Brazil, India and the U.S. to comply with the legislation.

Other Chinese e-retailers have come under American scrutiny as well.

Temu, an e-commerce platform offering a wide array of products at low prices that launched in the U.S. last fall, was the most-downloaded free app in the country in early February thanks partly to social media marketing.

Temu is run by PDD Holdings, operator of China's popular Pinduoduo platform, which has taken market share from giants like Alibaba Group Holdings with a similar low-price strategy. Washington has previously accused Pinduoduo of abetting copyright infringement.

Policy analyst Nicholas Kaufman, who authored the USCC report, wrote that Shein and possibly other Chinese fast-fashion companies "appear to be sourcing goods" from Xinjiang illegally. He also alleged that Chinese e-retailers "routinely" violate U.S. intellectual property rights, which is "a particular issue for independent artists who have their designs used without permission."

For companies that "are incorrigible and seek to skirt the law, we will seek enforcement action and bring public scrutiny to bear," said Rep. Chris Smith, a Republican from New Jersey.

Testimony at the hearing explained a "loophole" in U.S. law under which the location of origin does not need to be reported for shipments valued at less than $800. That loophole allows some products to enter the country without checking whether they were made in areas that use forced labor.

Washington has emphasized worker protections and human rights in its criticism of Chinese multinationals. While visiting a Tokyo store of American outdoor gear chain Patagonia last month, U.S. Trade Representative Katherine Tai said her country seeks to improve labor standards worldwide, and she called for the elimination of forced labor in global supply chains.

If Congress continues its tough talk against Chinese e-retailers, the Biden administration could take more concrete action.