Chinese fast-fashion brand Shein has reportedly filed for an initial public offering (IPO) that would make the company eligible for public trading in the United States.
According to Reuters, Shein was valued at $60 billion last May, which would make it one of the largest Chinese companies to ever go public in the US.
Given the stringent regulation of Chinese companies by the Chinese Communist Party (CCP), some are concerned about the potential risks associated with Shein being publicly traded.
Senator Rick Scott (R-Fl) has long investigated and criticized the CCP harnessing their influence and control over Chinese companies to monitor and influence US domestic affairs.
“Allowing continued IPOs for companies operating at the will of the CCP only hurts the integrity of our free & open system & our capital markets,” said Senator Scott.
Last May, Scott introduced the Secure America’s Financial Exchanges (SAFE) Act to ensure American institutions and the public are aware of any potential ties between foreign companies and the CCP.
The SAFE Act would require the Securities and Exchange Commission (SEC) to require companies publicly disclose if they have received any support from the Chinese government.
Additionally, the act would require disclosure of any CCP members within the company or any intra-company committees established by the CCP.
Scott explained he introduced the act to “crack down” on publicly-traded Chinese companies.
“It's exploitation of our markets & harmful to Americans,” claimed Scott.
I introduced the SAFE Act to crack down on this. It's exploitation of our markets & harmful to Americans.
Allowing continued IPOs for companies operating at the will of the CCP only hurts the integrity of our free & open system & our capital markets. https://t.co/B5chWfqKLr
— Rick Scott (@SenRickScott) November 28, 2023
Earlier last week, President Joe Biden and Chinese leader Xi Jinping met in a summit in San Francisco, California.
The two reportedly reached an informal agreement for curbing non-renewable energy use and fostering renewable energy sources.
Scott derided the agreement, referencing China’s previous failures to fulfill emissions reduction and renewable energy advancement promises.
