Investing.com-- Donald Trump's administration is considering placing Chinese e-commerce giants Shein and Temu on the Department of Homeland Security’s (DHS) forced labor list, Semafor reported on Wednesday citing sources familiar with the matter.
Temu is an online marketplace operated by the Chinese e-commerce company PDD Holdings (NASDAQ:PDD). Shein is a fast fashion company that buys clothes from factories to sell.
A decision to list the companies would signal the administration’s intent to further scrutinize Chinese imports, particularly consumer products, the Semafor report stated.
The discussions are ongoing, and no final decision has been made, it stated.
Temu told Semafor that it prohibits forced labor and enforces a "Third-Party Code of Conduct" requiring compliance with all labor laws. The company added that it reserves the right to cut ties with any seller or partner failing to meet these standards.
Shein stated that it was unaware of any such deliberations and maintained that a thorough review would confirm its compliance with the Uyghur Forced Labor Prevention Act (UFLPA), according to the report.
The company highlighted its voluntary participation in a Customs and Border Protection data program as part of its commitment to supply chain integrity.
The forced labor list, established by Congress in 2021 under the UFLPA, targets firms linked to forced labor in China’s Xinjiang region.
This move follows the Trump administration’s recent decision to close the “de minimis” tax exemption, which previously allowed shipments under $800 to enter the U.S. without duties, Semafor reported.