U.S. Weighs Sanctions on Chinese Ecommerce Giants for Alleged Forced Labor

The U.S. is considering adding Chinese ecommerce companies Shein and Temu to the Department of Homeland Security's 'forced labor' list. Discussions are ongoing, and a final decision has not been made. Both companies assert compliance with U.S. laws against forced labor, following recent trade tensions between the U.S. and China.

The U.S. government is currently evaluating whether to include Chinese ecommerce retailers, Shein and Temu, on the Department of Homeland Security’s ‘forced labor’ list, according to a report by Semafor on Tuesday.

Despite ongoing talks, the Trump administration has not reached a definitive conclusion regarding the potential listing of these companies, with representatives from both asserting their adherence to U.S. labor regulations. Shein, in a statement to Reuters, expressed their unawareness of any such deliberations and confirmed compliance with the UFLPA (Uyghur Forced Labor Prevention Act). Similarly, Temu highlighted their stringent ban on forced labor via their Third-Party Code of Conduct.

This development coincides with China’s strategic imposition of tariffs on U.S. imports and the warning of possible sanctions on American firms, including Google, as counteraction to tariffs imposed by U.S. President Donald Trump.

(With inputs from agencies.)