Latest news with #Uyghur
Yahoo
2 days ago
- Business
- Yahoo
Rubio wants to ‘aggressively' revoke Chinese student visas. Trump officials won't say how they're vetting them
Secretary of State Marco Rubio plans to 'aggressively revoke' Chinese student visas, targeting students with 'connections to the Chinese Communist Party' and those who are 'studying in critical fields.' His two-sentence announcement on Wednesday spared any details explaining how the administration plans to do any of that — blindsiding universities and foreign students now scrambling for guidance about what comes next. But officials won't publicly say how they're deciding whether they believe students are connected to the country's ruling party or what those 'critical fields' of study even are. 'We don't give details about what our methods are,' State Department spokesperson Tammy Bruce told reporters Thursday. 'Giving away the nature of how we choose to do things' could 'give up our hand' and undermine national security, she added. The State Department says it's scrutinizing China's 'exploitation of universities' including 'theft of research, intellectual property and technologies' exported to students' home countries, according to Bruce. 'Everyone who is here on a visa has to recognize … that America takes their visas seriously,' she said. 'Vetting is not a one-time process, it's continuing. And if things happen — you get arrested, if there's some kind of an issue — it's probably going to be seen at some point.' Chinese student visa holders 'must recognize' that the Trump administration is 'taking our national security seriously,' she added. 'And we are looking at their visas, and if everything's fine, terrific, but that will be a vetting that certainly continues and it's important clearly to the administration,' she said. Rubio's announcement on Wednesday said the State Department will work with the Department of Homeland Security to 'aggressively revoke visas for Chinese students, including those with connections to the Chinese Communist Party or studying in critical fields.' 'We will also revise visa criteria to enhance scrutiny of all future visa applications from the People's Republic of China and Hong Kong,' he added. Roughly 277,000 Chinese students studied in the United States last year, making them the second-largest group of foreign students in the country. Foreign students studying in the U.S. last year contributed approximately $44 billion to the U.S. economy. The announcement also follows the Trump administration's attempt to revoke Harvard University's ability to enroll international students — which has been blocked in court — and Rubio's order to pause any new appointments for student visas globally. The administration accused Harvard of 'coordinated activity' with China's ruling party, including 'training members of a CCP paramilitary group complicit in the Uyghur genocide.' Homeland Security Secretary Kristi Noem accused the university of 'fostering violence, antisemitism and coordinating with the Chinese Communist Party on its campus.' 'Chinese Communist Party' was emphasized in boldface. The Trump administration has launched what critics argue is a politically motivated effort to bend universities and institutions to his ideological commands, including unprecedented scrutiny, funding threats and the arrests and deportations of foreign students involved in pro-Palestine demonstrations against Israel's war in Gaza. Advocacy groups and Democratic lawmakers argue the administration's latest maneuvers escalate a years-long campaign of xenophobia that now risks a serious brain drain in the U.S. 'The wholesale revocation of student visas based on national origin — and without an investigation — is xenophobic and wrong,' stated the Congressional Asian Pacific American Caucus. 'Turning these students away — many of whom simply wish to learn in a free and democratic society — is not just shortsighted, but a betrayal of our values.' Rubio's 'sweeping policies' targeting students based on their country of origin and field of study 'mark a dangerous escalation in xenophobic rhetoric and risk undermining America's global leadership in science, research, and innovation,' according to the Asian American Scholar Forum. 'This policy threatens to dismantle the international talent pipeline that has long fueled American innovation and excellence,' according to the group's executive director, Gisela Perez Kusakawa. 'Chinese students contribute immensely to our campuses, communities, and economy,' she said. 'Treating them with blanket suspicion not only violates principles of fairness, due process, and our democratic values — it sends a chilling message to the world that America no longer welcomes global talent.' China's foreign ministry spokesperson Mao Ning also called Rubio's announcement 'politicized and discriminatory.' The action 'lays bare the U.S. lie that it upholds so-called freedom and openness,' she said Thursday. Hong Kong's Chief Executive John Lee told lawmakers that the city would welcome students who 'face unfair treatment' in the United States. 'I think this is an opportunity for Hong Kong,' he said Thursday. 'We will work with our universities to provide the best support and assistance.' A widely shared post from Hong Kong's University of Science and Technology also invited Harvard students to the school to 'continue their academic pursuits' following Trump's threats to international student visas at the Ivy League school. Average in-state tuition at public colleges and universities is roughly $21,270, and $37,430 for out-of-state. International students pay between $874 and $5,218 more in tuition and fees than out-of-state students, according to a report from the American Council on Education, which represents leaders at 1,600 colleges and universities. Private tuition rates are thousands of dollars higher. If Rubio pulls Chinese student visas, the 'damage' to the United States could be 'enormous and hard to undo,' according to Holger Hestermeyer, Professor of international law at King's College London. 'Now imagine your family in China coughs up that money. And after two years your visa is pulled,' he wrote. 'Refunds? What happens now? And for all future students: is that a risk worth taking?'
Yahoo
2 days ago
- General
- Yahoo
Followed, threatened and smeared — attacks by China against its critics in Canada are on the rise
For Yao Zhang, the news came as a shock. Sexually explicit, deepfake images of her were circulating widely online — an attack that Ottawa blamed on the Chinese government. It wasn't the first time Zhang had been targeted by China. Shortly after the Quebec-based accountant-turned-influencer travelled to Taiwan in January 2024 to support its independence, China's national police paid a visit to her aunt in Chifeng, in mainland China. Zhang was also doxxed — private information about her and members of her family was posted to a website listing people who weren't loyal to China — information only the Chinese government would know. False rumours began to spread online designed to discredit her, alleging that she had an affair with her stepbrother, that she was being paid by the U.S. government. Zhang isn't alone. CBC News spoke with several other Canadian activists who have spoken out against the People's Republic of China (PRC), all of whom described similar attacks: Family members in China questioned by police. Dissidents followed and surveilled in Canada. Threatening phone calls. Online attacks like spamouflage, using a bot network to push spam-like content and propaganda across multiple social media platforms. WATCH | Zhang's family paid a price: While Zhang says she still feels physically safe in Canada, the attacks take a mental toll. "I mean, they can reach you, of course, online or through your relatives in China. I don't think there's anything the Canadian government can do." An investigation by CBC News, in conjunction with the International Consortium of Investigative Journalists (ICIJ), has found attacks by the Chinese government on dissidents living in Canada — and around the world — are on the rise. It's a trend that worries experts on China, who say the attacks damage democracy and national security in Canada. "You've got a foreign government that is causing Canadian citizens and permanent residents to not feel safe in Canada, to not feel they can exercise their own rights and freedoms and speak out," said Michael Kovrig, a former diplomat and expert on Asia who was detained by China for more than 1,000 days. "By undermining those communities, they are ultimately undermining Canadian society and politics and ultimately national security." In June 2024, Parliament adopted Bill C-70 which was supposed to counter the rising threat of transnational repression and foreign interference in Canada by giving government departments and agencies more powers to fight it and by creating a foreign agent registry and a foreign interference transparency commissioner. However, nearly a year later, as reports indicate China has become more brazen, little has been done to put those measures in place, leaving it to Prime Minister Mark Carney's government to implement. In many cases, dissidents are targeted for expressing opinions contrary to the Chinese government's positions on what it calls "the five poisons": democracy in Hong Kong, treatment of Uyghurs, Tibetan freedom, the Falun Gong and Taiwanese independence. "[China] believes that a lot of the main threats to their dominance emanate from overseas," said Dan Stanton, a former CSIS intelligence officer who ran its China desk for four years. "So they need to go abroad to basically neutralize them." The ICIJ's "China Targets" investigation, in which 43 media organizations in 30 countries interviewed more than 100 victims, also documented how the Chinese Communist Party and its proxies have used international organizations such as Interpoland the United Nations to go after its critics and how little some countries have done to stop China's attacks on people living within their borders. After reviewing Chinese government guidelines, the investigation found that "tactics recently deployed against the subjects mirrored the guidelines on how to control individuals labeled as domestic security threats," the ICIJ wrote. The Chinese Embassy in Canada has yet to respond to questions from CBC News. Most of those interviewed didn't report the incidents to authorities in the countries where they were living, the ICIJ found, because they either feared retaliation or doubted the ability of local authorities to help. A number of victims in Canada declined interview requests from CBC News, saying they feared repercussions on themselves or their families. The ICIJ and CBC News found similar tactics being used against critics. In Canada, Justice Marie-Josée Hogue's Public Inquiry into Foreign Interference heard from a number of witnesses — some in public and others behind closed doors — who described incidents of China targeting Canadian residents on Canadian soil. Hogue's conclusion — transnational repression in Canada was a "genuine scourge" and the PRC was the "most active perpetrator of foreign interference targeting Canadian democratic institutions." "What I have learned about it is sufficient for me to sound the alarm that the government must take this seriously and consider ways to address it, Hogue wrote in her final report in January. Hogue said assessing the extent of transnational repression in Canada by China and other countries is difficult because those targeted "may fear reprisals." China uses "a wide range of tradecraft… including using a person's family and friends in China as leverage against them," she wrote. "The PRC uses its diplomatic missions, PRC international students, community organizations and private individuals, among others, to carry out its transnational repression activities." Mehmet Tohti, an Ottawa-based advocate for China's minority Uyghur community in Canada, knows what it is like to be under surveillance. Shortly after the House of Commons adopted a motion recognizing that China was carrying out genocide of Uyghurs in the province of Xinjiang, Tohti was leaving a dinner in Montreal when one of the other diners, who worked with Global Affairs, warned him two cars with covered licence plates were following him that evening. "It was the kind of moment that deeply affected my daily program," said Tohti. "Since then, even if sometimes it takes a little longer, every day I take a different route to my office and a different route from my office to my home." WATCH | How Tohti stays safe: This April, Tohti's three cellphones and his laptop were attacked. After reporting it to the RCMP and the University of Toronto's Citizen Lab, he learned that the attack originated in mainland China. Tohti said many Uyghurs living in Canada are cut off from their families back in Chinabut are also afraid to travel to some other countries for fear that China will use Interpol red notices to have local authorities arrest them and extradite them to China. Uyghur rights advocate Huseyin Celil, was arrested 19 years ago while visiting family in Uzbekistan and handed over to Chinese authorities, who refuse to recognize his Canadian citizenship. He was tried and convicted on what human rights groups have described as trumped-up terrorism charges. It is not known if Cecil is alive or dead. While China has gone after sitting members of Parliament, like Conservative Michael Chong and New Democrat Jenny Kwan, one of its highest profile attacks in recent months was on Joe Tay, a Toronto-area resident who has advocated for democracy in his birthplace of Hong Kong. In December, the Hong Kong Police Force issued a reward of $1 million HK ($177,111 Cdn) for information leading to his arrest for alleged national security violations. During the federal election, as Tay was running as the Conservative candidate in the riding of Don Valley North, the Canadian government's Security and Intelligence Threats to Elections (SITE) Task Force reported a transnational repression operation on Chinese-language social media platforms, amplifying posts related to the bounty and arrest warrant against Tay and suppressing search results on platforms based in the PRC. "The search engine only returns information about the bounty," the task force wrote. "This is not about a single incident with high levels of engagement. It is a series of deliberate and persistent activity across multiple platforms — those in which Chinese-speaking users in Canada are active, including: Facebook, WeChat, TikTok, RedNote and Douyin, a sister-app of TikTok for the Chinese market." At one point during the campaign, police advised that Tay stop campaigning door to door for his own safety, he confirmed. Shortly after the federal election, on May 8, news reports in Hong Kong said Tay's cousin and his wife were brought to a police station from their home in Hong Kong's Fo Tan district to "assist in an investigation" relating to Tay. Tay declined an interview request from CBC News. "I will need a much longer time to reflect on a lot of things still," he wrote in a text. Hugh Yu campaigned for Tay and leads a pro-democracy group in Toronto. He said his members are often reluctant to grant interviews or openly participate in his organization. "They walk away … a lot of people come and say, 'I'm sorry, Hugh, because I have a lot of pressure from family,'" he said, describing how "almost all" of their families in China would have their jobs or pensions threatened because of their public opposition to the Chinese government. Yu said when his group holds pro-democracy demonstrations at Toronto City Hall or at the Chinese consulate, they are watched, with people taking photos and videos. "I think at this point the CCP is very, very successful [at] controlling all of the community, the Chinese community in Canada." Gloria Fung is past president of Canada-Hong Kong Link and has lobbied for Canada to have a registry of foreign agents. She has also received phone calls warning her to stop interfering with Hong Kong's and China's affairs and notices from Google about attempts by state-level hackers to get into her computer systems. Kovrig says China tries to influence how it is perceived and control the message. If influence doesn't work, it resorts to transnational repression. "You're either trying to incentivize people to be supportive of the PRC… or you're trying to censor and silence and coerce potential critics and dissidents to be afraid to speak out," he said. "And that's the repression part." Kovrig says the PRC tends to target Chinese diaspora communities more because it is easier to intimidate people who have relatives back in China or who belong to a community where many people are sympathetic to the CCP. It's also harder for police or intelligence agencies to get inside those communities and understand what is going on. WATCH | China becoming more brazen, Kovrig says: Kovrig has also observed how the PRC has become more aggressive over time. "Whereas previously, Chinese actors might have been relatively reluctant to be more heavy-handed or coercive for fear of negative consequences, increasingly, as China has become more powerful as a state, it's become increasingly brazen about what it's willing to do." Stanton, the former CSIS officer, says where once China might have tried to bring a dissident back to China, now the surveillance and the tactics are more sophisticated. "They may approach extended family members in the PRC, starting with a subtle message, and then it gets a little graver that their relative or counterpart over in Canada is doing anti-state activity.… Maybe someone will lose a job in China to get the message to that person in Canada that they can't speak freely." Stanton, who would like to see a public inquiry on transnational repression, said the government needs a more cohesive approach to dealing with it. "You can't deal with that if the community is not prepared to come forward and talk about it," he said, adding that they're reticent about talking about it because, generally speaking, there's never any action from Canadian officials. "They're left speaking out about it and nothing's done about it from their perception." WATCH | Stanton describes China's tactics: In their responses to the ICIJ and other media organizations, other Chinese embassies dismissed reports China was engaging in transnational repression. "There is no such thing as 'reaching beyond borders' to target so-called dissidents and overseas Chinese… the Chinese government strictly abides by international law and the sovereignty of other countries," Liu Pengyu, spokesperson for the Chinese Embassy in the United States, told the ICIJ. "The notion of 'transnational repression' is a groundless accusation, fabricated by a handful of countries and organizations to slander China." As for affairs related to Hong Kong, Tibetans and Uyghurs, they "are entirely China's internal matters," Pengyu wrote. "China firmly opposes the politicization, instrumentalization, or weaponization of human rights issues, as well as foreign interference under the pretext of human rights." Dennis Molinaro, of Ontario Tech University, who recently wrote Under Siege, a book on foreign interference by China in Canadian society, said other countries like Australia and the United States have taken more steps to curb transnational repression. "A lot of activists are particularly dismayed and upset by how little has been done to protect people in Canada and Canadian citizens," he said. "There's sometimes this view that this is akin to community infighting, and it's not. "This is an aggressive state that is targeting Canadian citizens within Canada. These are citizens that are a part of Canada. They shouldn't be ignored," said Molinaro. While direct attacks and threatening phone calls have been largely confined to more active members of the Chinese diaspora in Canada, Fung said transnational repression has had a chilling effect on the entire community. "There's a very famous idiom in China that you kill the chicken to scare all the monkeys." Fung said by delaying the implementation of the foreign agent registry provided for in Bill C-70, the government is giving "a green light" to foreign agents to continue to operate on Canadian soil without any consequences. Public Safety Minister Gary Anandasangaree's office has yet to respond to requests from CBC News for an interview. Max Watson, spokesperson for the ministry said the government has been actively responding to transnational repression, working with communities and with international partners to address the threat. However, Watson said several steps are still required to implement the provisions of C-70, such as drafting regulations, setting up the office, appointing the commissioner and building the IT infrastructure for a registry. But advocates like Tohti and Yu say their sense of safety and security in Canada has deteriorated. Unlike 20 years ago, when he first arrived here, Yu says he doesn't feel safe in Canada. Zhang, however, has no plans to stop speaking out — even if what she says angers the Chinese government. "At the end of the day, Canadians will protect me from the Chinese government's hand. I truly believe that."
Straits Times
3 days ago
- Business
- Straits Times
Shein switching to Hong Kong listing after London IPO stalls, sources say
Shein's proposed listing in London failed to secure the green light from Chinese regulators, sources say. PHOTO: REUTERS HONG KONG - Shein is working towards a listing in Hong Kong after the online fast-fashion retailer's proposed initial public offering (IPO) in London failed to secure the green light from Chinese regulators, said three sources with knowledge of the matter. The Singapore-based company aims to file a draft prospectus with Hong Kong's stock exchange in the coming weeks, one of the sources said. Shein plans to go public in the Asian financial hub within the year, two of the sources said. Shein plans to change the listing venue as it had not yet received approval for its London IPO from Chinese regulators, notably the China Securities Regulatory Commission (CSRC), the two sources said. The company in March secured approval from Britain's Financial Conduct Authority (FCA) for its IPO in London, and soon informed the CSRC, one of the sources said. The company initially expected the green light from Chinese regulators to follow swiftly after the FCA but has since experienced an unexpected delay and limited communication from the CSRC, said the source. Before its attempt to list in London, Shein had pursued a listing in New York, as part of its efforts to gain legitimacy as a global, rather than a Chinese company, and access to a wide pool of large Western investors. A listing in Hong Kong would go against that strategy and could hurt its global credentials. Allegations that Shein's products contain cotton from China's Xinjiang region and a planned legal challenge to the London IPO by a non-governmental organisation campaigning against forced labour in China have complicated the London listing and risk embarrassment for the Chinese government, a separate source with direct knowledge of the matter said. Tensions with the United States over trade only exacerbate the wariness of Beijing and the CSRC, the source said. The US and NGOs accuse China of human rights abuses in the Xinjiang Uyghur Autonomous Region, where they say Uyghur people are forced to work producing cotton and other goods. Beijing has denied any abuses. Shein says it has a zero tolerance policy for forced labour and child labour in its supply chain. IPO valuation In 2022, the company moved its headquarters from China to Singapore for regulatory, international expansion, and financial reasons – while keeping its supply chains and warehouses in China. Shein does not own or operate any factories, and instead sources its products from 7,000 third-party suppliers in China as well as some factories in other countries like Brazil and Turkey. But its business model of sending products straight from factories to shoppers around the world has been disrupted by the Trump administration ending duty-free access and slapping steep tariffs on e-commerce packages from China. The 'de minimis' exemption allowed e-commerce packages from China worth less than US$800 to enter the US duty-free and helped Shein, Temu, and Amazon Haul sell clothes, gadgets and accessories extremely cheaply. Now, those parcels are subject to a minimum tariff of 30 per cent. Regardless of where Shein lists, its eventual IPO valuation will hinge on the impact of the removal of the de minimis exemption, the sources have said. The US exemption is still in place for goods that are not from China or Hong Kong. The European Union has also proposed changes to its duty exemption on parcels under 150 euros, adding to pressure on the business model. Reuters reported in February that Shein was set to cut its valuation in a potential London listing to around US$50 billion (S$64.5 billion), nearly a quarter less than the US$66 billion valuation it achieved in a US$2 billion private fundraising in 2023. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Business of Fashion
3 days ago
- Business
- Business of Fashion
Shein Working Towards Hong Kong Listing After London IPO Stalls, Say Sources
Shein is working towards a listing in Hong Kong after the online fast-fashion retailer's proposed initial public offering (IPO) in London failed to secure the green light from Chinese regulators, said three sources with knowledge of the matter. The China-founded company aims to file a draft prospectus with Hong Kong's stock exchange in the coming weeks, one of the sources said. Shein plans to go public in the Asian financial hub within the year, two of the sources said. Shein plans to change the listing venue as it had not yet received approval for its London IPO from Chinese regulators, notably the China Securities Regulatory Commission (CSRC), the two sources said. The company, which sells products including $5 bike shorts and $18 sundresses, in March secured approval from Britain's Financial Conduct Authority (FCA) for its IPO in London, and soon informed the CSRC, one of the sources said. The company initially expected the green light from Chinese regulators to follow swiftly after the FCA but has since experienced an unexpected delay and limited communication from the CSRC, said the source. Details about Shein's Hong Kong listing plan have not been reported previously. All the sources spoke to Reuters on the condition of anonymity as they were not authorised to speak to the media. Shein and CSRC did not immediately respond to Reuters request for comment. A spokesperson for Hong Kong Exchanges and Clearing Ltd (HKEX) declined to comment on individual companies. Before its attempt to list in London, Shein had pursued a listing in New York, as part of its efforts to gain legitimacy as a global, rather than a Chinese company, and access to a wide pool of large Western investors. A listing in Hong Kong would go against that strategy and could hurt its global credentials. Allegations that Shein's products contain cotton from China's Xinjiang region and a planned legal challenge to the London IPO by a non-governmental organisation campaigning against forced labour in China have complicated the London listing and risk embarrassment for the Chinese government, a separate source with direct knowledge of the matter said. Tensions with the US over trade only exacerbate the wariness of Beijing and the CSRC, the source said. The United States and NGOs accuse China of human rights abuses in the Xinjiang Uyghur Autonomous Region, where they say Uyghur people are forced to work producing cotton and other goods. Beijing has denied any abuses. Shein says it has a zero tolerance policy for forced labour and child labour in its supply chain. As it awaited a response from the CSRC, Shein dropped the communications firms Brunswick and FGS it had hired to help with public relations ahead of the London listing, Reuters reported earlier this month. IPO Valuation Reuters could not determine if Shein had sought or received a nod from the CSRC for the Hong Kong listing. The company had sought Chinese regulatory approval for going ahead with processes to list in New York and later in London. Shein's filings with the CSRC makes it subject to Beijing's listing rules for Chinese firms going public offshore, two sources have said. The rules are applied on 'a substance over form' basis, giving the CSRC discretion on when and how to implement them, the sources added. Shein does not own or operate any factories, and instead sources its products from 7,000 third-party suppliers in China as well as some factories in other countries like Brazil and Turkey. Shein's aim was to go public in London in the first half of this year. But its business model of sending products straight from factories to shoppers around the world has been disrupted by the Trump administration ending duty-free access and slapping steep tariffs on e-commerce packages from China. The 'de minimis' exemption allowed e-commerce packages from China worth less than $800 to enter the US duty-free and helped Shein, Temu, and Amazon Haul sell clothes, gadgets and accessories extremely cheaply. Now, those parcels are subject to a minimum tariff of 30 percent. Regardless of where Shein lists, its eventual IPO valuation will hinge on the impact of the removal of the de minimis exemption, the sources have said. The US exemption is still in place for goods that are not from China or Hong Kong. The European Union has also proposed changes to its duty exemption on parcels under 150 euros, adding to pressure on the business model. Reuters reported in February that Shein was set to cut its valuation in a potential London listing to around $50 billion, nearly a quarter less than the $66 billion valuation it achieved in a $2 billion private fundraising in 2023. By Julie Zhu, Hadeel Al Sayegh, Helen Reid, Kane Wu; Editors: Sumeet Chatterjee, Stephen Coates Learn more: EU Warns Shein of Fines in Consumer Protection Probe The EU has ordered Shein to address consumer law breaches within one month or face potential fines.
RTÉ News
3 days ago
- Business
- RTÉ News
Shein working towards Hong Kong listing after London IPO stalls
Shein is working towards a listing in Hong Kong after the online fast-fashion retailer's proposed initial public offering (IPO) in London failed to secure the green light from Chinese regulators, said three sources with knowledge of the matter. The China-founded company aims to file a draft prospectus with Hong Kong's stock exchange in the coming weeks, one of the sources said. Shein plans to go public in the Asian financial hub within the year, two of the sources said. Shein plans to change the listing venue as it had not yet received approval for its London IPO from Chinese regulators, notably the China Securities Regulatory Commission (CSRC), the two sources said. The company in March secured approval from Britain's Financial Conduct Authority (FCA) for its IPO in London, and soon informed the CSRC, one of the sources said. The company initially expected the green light from Chinese regulators to follow swiftly after the FCA but has since experienced an unexpected delay and limited communication from the CSRC, said the source. Details about Shein's Hong Kong listing plan have not been reported previously. All the sources spoke to Reuters on the condition of anonymity as they were not authorised to speak to the media. Shein and CSRC did not immediately respond to Reuters request for comment. A spokesperson for Hong Kong Exchanges and Clearing Ltd declined to comment on individual companies. Before its attempt to list in London, Shein had pursued a listing in New York, as part of its efforts to gain legitimacy as a global, rather than a Chinese company, and access to a wide pool of large Western investors. A listing in Hong Kong would go against that strategy and could hurt its global credentials. Allegations that Shein's products contain cotton from China's Xinjiang region and a planned legal challenge to the London IPO by a non-governmental organisation campaigning against forced labour in China have complicated the London listing and risk embarrassment for the Chinese government, a separate source with direct knowledge of the matter said. Tensions with the US over trade only exacerbate the wariness of Beijing and the CSRC, the source said. The US and NGOs accuse China of human rights abuses in the Xinjiang Uyghur Autonomous Region, where they say Uyghur people are forced to work producing cotton and other goods. Beijing has denied any abuses. Shein says it has a zero tolerance policy for forced labour and child labour in its supply chain. As it awaited a response from the CSRC, Shein dropped the communications firms Brunswick and FGS it had hired to help with public relations ahead of the London listing, Reuters reported earlier this month. Reuters could not determine if Shein had sought or received a nod from the CSRC for the Hong Kong listing. The company had sought Chinese regulatory approval for going ahead with processes to list in New York and later in London. Shein's filings with the CSRC makes it subject to Beijing's listing rules for Chinese firms going public offshore, two sources have said. The rules are applied on "a substance over form" basis, giving the CSRC discretion on when and how to implement them, the sources added. Shein does not own or operate any factories, and instead sources its products from 7,000 third-party suppliers in China as well as some factories in other countries like Brazil and Turkey. Shein's aim was to go public in London in the first half of this year. But its business model of sending products straight from factories to shoppers around the world has been disrupted by the Trump administration ending duty-free access and slapping steep tariffs on e-commerce packages from China. The "de minimis" exemption allowed e-commerce packages from China worth less than $800 to enter the US duty-free and helped Shein, Temu, and Amazon Haul sell clothes, gadgets and accessories extremely cheaply. Now, those parcels are subject to a minimum tariff of 30%. Regardless of where Shein lists, its eventual IPO valuation will hinge on the impact of the removal of the de minimis exemption, the sources have said. The US exemption is still in place for goods that are not from China or Hong Kong. The European Union has also proposed changes to its duty exemption on parcels under €150, adding to pressure on the business model.
