While the American consumer may be tempted by Shein’s mind-boggling array of inexpensive items, the low prices come at a steep cost.
The Chinese fast-fashion company Shein has weaseled its way into the upper echelons of American government, through the loopholes of our tax code, and into our closets.
Shein (pronounced “she-in”) produces fast fashion at lightning speed. By tapping AI technology, lobbying the powerful, dodging customs duties, and using Chinese Communist Party forced labor, the Chinese retailer has rocketed to the top of the e-commerce world.
Shein’s influence stretches into the White House and beyond. Kash Patel, who was just confirmed as the next FBI director, stands to gain millions from Shein while he serves in office.
According to a report by the Wall Street Journal, Patel plans to retain the multimillion-dollar shares he received from Shein’s parent company for consulting work. “Those shares will vest — or become his to trade — over the course of 2025, which effectively means he will have a continuing financial relationship with a foreign company.” Patel is not the first friend of Trump to have close ties with Shein. Former adviser Hope Hicks has also consulted for the Chinese behemoth, and Todd Blanche, Trump’s personal lawyer, has represented the company before.
Shein.com is the most visited fashion and apparel website worldwide. In 2023, Shein was one of the most-downloaded shopping apps in the U.S. — second only to its counterpart Temu, a Chinese version of Amazon. In 2022, investors valued Shein at $100 billion.
Shein rocketed in popularity through social media influencers — especially those on TikTok — who were compensated to hawk Shein items online. Oftentimes, influencers post “#sheinhaul” videos, showcasing different outfits they have received from the online retailer. There are over a million videos on TikTok alone with #sheinhaul in the post. Shein’s own account on TikTok has accrued nearly 10 million followers.
In just a few years, Shein has become the flag-bearer of “real-time retail.” With the help of AI, Shein tracks the digital interests of its customers and competitors to identify popular fashion items. (The CCP has access to its customer data as well.) Almost instantaneously, that data is transported to a network of factories in China, armed and ready to make a cheap knockoff version. Shein then tests consumer demand with a low-batch order and modifies production output based on sales.
Under this model, new designs can be produced in just three days — a light-speed rate that enables 600,000 items to be listed on the site at any given time. Essentially, Shein is a massive, organized, AI-powered parasite that feeds off the designs of other companies and can crank out low-quality, polyester versions in less than a week.
The company’s success results from the incredibly low price tag of most of its items. You can buy a woman’s shirt for less than $5 and an evening gown for less than $10. At those prices, you can buy a whole new wardrobe for $100.
Anyone who visits Shein’s site is bombarded with colorful pop-ups, coupons, and “special offers.” While most popular for its cheap clothing, Shein sells just about everything. My “recommended” page includes a $0.76 stainless steel corn peeler, a motion sensor toilet light for $2.30, and a leg training ankle strap for $3. You can also buy switchblades, pacifiers, and coffins from the e-commerce retailer.
While the American consumer may be tempted by Shein’s massive array of inexpensive items, the low prices come at a steep cost. Shein cuts corners, exploits workers, and dodges tariffs — all so that Zoomers can buy a sparkly dress for $7.
With regard to product quality, Shein has received an “F” rating from the Better Business Bureau for quality issues, delivery delays, and poor customer service.
The company doesn’t treat its employees any better.
According to a report from Public Eye, a Swiss advocacy group, many Shein employees work 75 hours a week — and get only one day off a month. In addition, the company has often been accused of forcefully employing the Uyghurs, an ethnic group in China persecuted by the CCP, and for falsifying reports of forced or underpaid labor at its supplier factories.
In a report titled “Fast Fashion and the Uyghur Genocide,” the House Select Committee on the CCP revealed how Shein uses Section 321 of the Tariff Act of 1930 — known as the de minimis rule — to its benefit. The provision allows importers to avoid customs duties on incoming packages that are valued at less than $800. Because Shein employs a direct-to-consumer model, all packages are shipped straight from Chinese factories to your front door.
The committee found that Shein and Temu together “are likely responsible for more than 30 percent of all packages shipped to the United States daily under the de minimis provision, and likely nearly half of all de minimis shipments to the U.S. from China.” Because most of Shein’s U.S. shipments enjoy this loophole, the company avoids hundreds of millions of dollars worth of customs duties each year. As such, Shein’s products are noticeably cheaper and less likely to face formal customs scrutiny.
Further, the immense volume of all U.S. de minimis shipments, which numbered 1 billion in 2023 and 1.4 billion in 2024, makes inspection impossible. This open back door creates incentives for operatives in China to exploit the program and move fentanyl, along with other banned goods.
Trump tried to close the loophole at the beginning of the month, a noble effort that was hampered by the inability of the U.S. Postal Service and Customs and Border Protection to suddenly process an exponential increase in packages. His administration put the order on hold after a million packages piled up at JFK International Airport in New York.
President Trump must follow through on the effort and stanch the spread of Shein’s ill-gotten domination once and for all.