Thursday's congressional report comes a week after two bipartisan bills targeting a trade rule that benefits Chinese retailers like Shein were introduced.
Congressional lawmakers are going after one of Gen Z's favorite fashion retailers as part of an investigation into the use of forced labor in supply chains that involve China.
In a report released Thursday, the committee said Shein and Temu, a rapidly-growing Chinese online megastore, built their empires by relying"heavily" on the"de minimis" loophole, which critics argue gives foreign e-commerce companies an unfair advantage because import packages valued under $800 are not charged duties, taxes or fees.
In an effort to clean up its reputation, Shein hired Washington lobbyists this year and relocated its headquarters from Nanjing, China, to Singapore.
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