‘Shein Goes Public in New York’ Just After the Fuss Over ‘Influencer Propaganda’

This article was last updated on June 30, 2023

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Chinese Clothing Giant Shein Makes Its Debut on the US Stock Exchange

Chinese online clothing retailer Shein has officially gone public in New York, as reported by Reuters. The company recently applied for an initial public offering (IPO) with the US stock exchange authorities. With an estimated worth of $60 billion, this IPO positions Shein as the largest American IPO of a Chinese company since Didi Global, a competitor to Uber, went public in 2021.

Poor Working Conditions Controversy

Shein has faced controversy due to allegations of poor working conditions within its supply chain. Public Eye, a Swiss human rights organization, revealed that workers in Shein supplier factories are required to work more than 75 hours per week. Furthermore, investigations by Channel 4 journalists found excessively long working days and instances where employees were not paid for mistakes made on the job.

Influencer Propaganda Backlash

This month, Shein faced backlash when American influencers were criticized for promoting the brand after being treated to a luxury trip to China, including a visit to a model factory. These influencers, who have millions of followers, praised Shein and their experience on social media platforms. However, one of the influencers, Dani DMC, later issued an apology on Instagram, stating that she had made a mistake and ended her association with Shein.

Shein’s Move to Singapore

Rumors about Shein’s potential IPO have been circulating for years. The company recently relocated its headquarters from China to Singapore, a move that is expected to facilitate the IPO process in the United States.

However, dozens of US congressmen from both the Republican and Democratic parties are demanding that the US stock exchange authority halt Shein’s IPO until it can be confirmed that the company is not involved in the use of forced labor. A Bloomberg investigation revealed that Shein sources cotton from the Xinjiang region, where the Uyghur Muslim minority is reportedly subjected to forced labor in cotton fields and garment factories.