Select Committee Asks Adidas, Shein, Nike and Temu to Detail UFLPA Compliance
The chairman and ranking member of the House Select Committee on China wrote to Adidas and Nike, telling them they were told by a witness that they source material from Xinjiang for their products, and to Shein and Temu, asking them questions about their use of de minimis, and, in the case of Shein, asking it to share all its cotton DNA test results with the committee.
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The four letters were sent May 2, and publicized that evening by the committee.
Some of the questions to Temu and Shein asked how many de minimis shipments they send a day to the U.S. -- including through Canada and Mexico, and how they determine the valuation reported to CBP. They asked how many of these shipments "are scrutinized by CBP," and if CBP or a consignee has ever challenged the shipment's valuation.
They asked both companies how many on-site assessments of suppliers they did in 2022, and if they found forced labor during those visits. If they did, the letters asked, did they terminate contracts with those suppliers?
To Shein, the committee leaders asked what percentage of their garments contain cotton, and if the company explicitly forbids its suppliers from using cotton grown in Xinjiang. They asked how the company verifies the chain of custody documents its suppliers provide for cotton from field to factory. They asked if DNA testing from Oritain has ever detected cotton grown in the Xinjiang Uyghur Autonomous Region, and if so, how many times.
To Adidas and Nike, they asked that they detail the steps they have taken since the enactment of the Uyghur Forced Labor Prevention Act "to ensure garments that are made from cotton, viscose, lyocell, polyester, leather, and linen are not manufactured using forced labor by Uyghurs or other minority groups who are subjugated by" the Chinese Communist Party.
They asked both companies if they source from any of these firms: Jingsu Lianfa Group, Luthai Textile, Huafu Fashion, Texhong Textile or Weiqiao Textile. They asked if each firm "has conclusively identified every supplier of fabric, cotton and yarn in its global supply chain for products sold in the United States?" If the answer is yes, they told the companies to provide documents on those suppliers to the committee. If the answer is no, they asked for detailed explanations of how they are able to assess UFLPA compliance.
The committee asked Adidas if it sells any Xinjiang-grown-cotton-containing garments outside North America. It asked Nike about a New York Times story in 2020 that uncovered Uyghur forced labor at TKG Taekwang, a contract manufacturer. It said that Nike says the manufacturer no longer uses Uyghur forced labor, and asked how they verified that. The letter says: "Why does Nike still consider TKG Taekwang to be a suitable business partner?"
Chairman Mike Gallagher, R-Wis., said in a press release that in its hearing on oppression of Uyghurs in Xinjiang, "We heard that American companies benefit from the forced labor that is extracted from the Uyghur population. The Committee is deeply troubled by the reports of corporate complicity raised by our witnesses, and will be examining their concerns about American companies. Just as in the mid 1940’s, Americans have been slow to believe reports. Many American corporate leaders still don golden blindfolds when operating in China. What else do we possibly need to know?”