Republican and Democratic representatives issued letters demanding Nike, Adidas, Shein and Temu ensure their supply chains are free from forced labor or exit countries like China.

Both the Republican Chairman of the Select Committee on the Chinese Communist Party, Rep. Mike Gallagher from Wisconsin, and the Democratic Ranking Member, Rep. Raja Krishnamoorthi from Illinois, contacted the companies regarding concerns about forced labor and the exploitation of the de minimis loophole by Shein and Temu, according to a May 3 news release.

“Using forced labor has been illegal for almost a hundred years — but despite knowing that their industries are implicated, too many companies look the other way hoping they don’t get caught, rather than cleaning up their supply chains," Gallagher said in the release. "This is unacceptable. American businesses and companies selling in the American market have a moral and legal obligation to ensure they are not implicating themselves, their customers or their shareholders in slave labor."

The U.S. implemented the Uyghur Forced Labor Prevention Act June 21, 2022. This law empowers officials to prevent the importation of products that are in any way associated to forced labor in China. For a considerable time, China has subjected individuals, including the Uyghur population, to forced labor, according to Human Rights Watch.

According to the release, certain businesses like Shein and Temu, are taking advantage of the de minimis loophole, a legal provision that exempts packages worth less than $800 from inspection by the U.S. Customs and Border Patrol. The intention was to ease the workload of customs officials when processing low-value packages. However, it is being exploited by companies to avoid paying taxes and complying with legal obligations American companies must follow.

“The American people deserve to know how much of what they’re wearing was produced by forced labor in China," Krishnamoorthi said in the release. "We’ve heard from victims about the brutality of forced labor camps that are part of the CCP’s ongoing genocide against the Uyghurs and other ethnic minorities in China. These companies need to show that they’re following the law, and their supply chains are free from forced labor."

Krishnamoorthi said this is just the first step in the investigation, the release reported. He said he is ready to work with Gallagher "to shine a light on how forced labor may contaminate our supply chains, and how we need to put an end to this going forward."

"Our message to industry in these letters is clear: either ensure your supply chains are clean — no matter how difficult it is — or get out of countries like China implicated in forced labor,” Gallagher added, according to the release.