Chinese fast fashion giant, SHEIN, has said that newly imposed US tariffs will not hinder its ability to serve the American market, as per an AFP report. Executive Chairman Donald Tang told AFP that the company is prepared to “find a way to deliver the goods,” regardless of the 20 per cent tariff increase on Chinese imports. Tang emphasised the resilience of SHEIN’s “business model,” citing its ability to navigate previous disruptions like the COVID-19 pandemic.
The company, headquartered in Singapore but with strong ties to Chinese manufacturing, has faced intense scrutiny regarding its labour practices and environmental impact. Tang reiterated SHEIN’s “zero tolerance” policy on forced labour, asserting that the company adheres to International Labour Organization standards and conducts independent, unannounced factory audits. However, human rights organisations like Public Eye and Amnesty International maintain that these measures are insufficient. Public Eye’s investigation revealed instances of workers logging 75-hour workweeks, while Amnesty International calls for greater transparency, particularly regarding operations in Xinjiang.
SHEIN’s potential public listing, with London as a likely venue, is expected to increase transparency. Tang stated that a listing would “reinforce trust” by making transparency a requirement. However, the British Parliament’s Business and Trade Committee has previously expressed concerns about the company’s lack of transparency regarding its supply chain. Tang confirmed that SHEIN has responded to the committee’s inquiries.
In an effort to improve its environmental image, SHEIN announced an approximate US $ 216 million investment in European circular-economy and recycling projects. Tang indicated ongoing discussions with technology leaders in France and other European cities. Environmental groups, such as Friends of the Earth, have criticised SHEIN’s massive carbon footprint, estimating that its operations generate 15,000 to 20,000 tonnes of carbon dioxide daily. The company’s massive daily product releases are a key concern. As the EU and individual nations consider regulations to curb fast-fashion waste, SHEIN faces increasing pressure to demonstrate sustainability.
