Shein’s $600K Washington Lobbying Bill, Explained
Shein nearly tripled its Washington lobbying bill last quarter, government records show.
The ultra-fast-fashion phenom’s increased spending on federal influence comes as congressional leaders scrutinize the Temu rival‘s policies, practices and potential links to forced labor in China’s Xinjiang Uyghur Autonomous Region.
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Shein spent $600,000 on lobbying activities between April 1-June 30, according to a federal filing that listed Mark Aitken and Sirat Attapit as in-house registered lobbyists and Yuwen Chang as the Chinese fast-fashion company’s legal counsel. Aitken and Attapit, whose titles are both listed as vice president of U.S. government relations at Shein Technology on LinkedIn, worked on “legislative and regulatory issues impacting the apparel industry and e-retailers, including trade related matters,” along with providing “general education regarding Shein’s presence, operating footprint, and economic impact in the United States,” according to a report published Friday.
Lobbying expenses include traditional expenditures such as consulting fees but also encompass duties for trade organizations like the American Apparel and Footwear Association, which Shein supports as a member and affiliate sponsor.
Shein, recently accused of operating as a criminal enterprise, appears to be mounting a defense against critics and Congress. In the first quarter this year, it paid Washington lobbying groups Hobart Hallaway & Quayle Ventures and Akin Gump Strauss Hauer & Feld $230,000 for similar services after originally retaining them in the fall.
The most recent disclosure comes as lawmakers question if Shein, valued at $65 billion to $85 billion and rumored to be planning an IPO, has engaged in anti-competitive practices and human rights violations within its supply chain.
In June, after lawmakers wrote to the company expressing their concerns about forced labor, the House Select Committee on the Chinese Communist Party (CCP) released a bipartisan report fingering Shein and Chinese-founded digital marketplace Temu for their ties to Xinjiang. The committee estimated that the two were responsible for over 30 percent of packages that enter the U.S. using the de minimis provision, totaling about 600,000 parcels per day. While still subject to the UFLPA, these packages are tougher for Customs and Border Protection to trace, meaning that products made with forced labor are likely being sold to U.S. consumers on a regular basis, they wrote.
What’s more, ShutDownShein.com emerged in April as an anonymous coalition of brands, human rights organizations and concerned individuals united against forced labor and the company’s ability to subvert the UFLPA and skirt tariffs by exploiting U.S. customs laws.
Other countries are taking a second look at Shein. South Africa is looking into whether Shein’s getting away with paying lower customs duties than it should. And last month, French center-left political party Place Publique launched a campaign against the e-tailer for encouraging people to purchase hoards or disposable fossil-fuel clothing. The “Stop Shein” petition they circulated garnered 31,000 signatures, and moved French economic minister Bruno Le Maire to erect a “legislative and regulatory shield” against the company to limit its access to the French market.
Shein appears to be trying to shift the narrative around its reputation. During a webinar last month, executive vice chairman Donald Tang said that the company is “trying to focus on trial and error and to make sure there’s no waste,” so it can pass cost savings onto consumers.
