Washington — The Republican chairman of the U.S. House Select Committee on China has called on JPMorgan, Goldman Sachs and Morgan Stanley to withdraw support for Shein’s planned Hong Kong initial public offering, citing allegations of forced labor in the fast-fashion company’s supply chain.
Rep. John Moolenaar said Shein is expected to pursue a listing on the Hong Kong Stock Exchange next month after previously failing to secure listings in New York and London amid scrutiny of its supply chain.
“For major U.S. banks to bankroll Shein’s IPO shows these institutions have no regard for human rights or the victims of forced labor who will be forced to pick cotton for Shein’s clothes,” Moolenaar said in a statement.
He also accused the banks of helping channel foreign capital into China’s economy and financial markets.
“These American banks are being used as a tool by the CCP to bolster their declining economy and capital markets with outside money, enabling a CCP Ponzi scheme on the rest of the world,” Moolenaar said.
The lawmaker questioned the banks’ commitments to U.S. national security and human rights while supporting the proposed offering.
“It is unconscionable for the American leaders of these institutions to claim they care about U.S. national security and then underwrite a company tied to the CCP and its forced labor and genocide,” he said.
The committee’s statement did not specify the roles JPMorgan, Goldman Sachs or Morgan Stanley are playing in the proposed IPO. It also did not disclose how much Shein is seeking to raise or provide an exact date for the listing.
The statement did not include responses from Shein or the three banks.
Moolenaar’s allegations have not been presented as findings by a court or regulatory authority.
Shein has grown into one of the world’s largest online fashion retailers by offering low-cost clothing and rapidly changing product lines. Its supply chain has faced scrutiny from U.S. lawmakers over possible exposure to cotton and other materials originating in China’s Xinjiang region.
The U.S. government has accused China of genocide and crimes against humanity against Uyghurs and other predominantly Muslim minorities in Xinjiang. Beijing has denied allegations of widespread forced labor and human rights abuses in the region. (Source: IANS)
