Texas Attorney General Ken Paxton (R) launched an investigation into a Chinese fast-fashion retailer for alleged unsafe consumer products and unethical labor practices, marking the latest action GOP state attorneys general have taken to crack down on Chinese companies.
Paxton framed it as a move to Make America Healthy Again, the slogan Health and Human Services Secretary Robert F. Kennedy has adopted to promote healthier lifestyles and opposition to vaccines.
“Safe, non-toxic material and products are another key ingredient to the Make America Healthy Again movement. Any company that cuts corners on labor standards or product safety, especially those operating in foreign nations like China, will be held accountable,” Paxton said in a statement released Monday.
“Texans deserve to know that the companies they buy from are ethical, safe, transparent, and not exploiting workers or selling harmful products. I will not allow cheap, dangerous, foreign goods to flood America and jeopardize our health.”
Paxton is investigating Shein’s supply chains and manufacturing practices to determine whether it is violating Texas law by misleading consumers about the safety and sourcing of its products. The investigation will also examine Shein’s approach to privacy and data collection.
Paxton is currently running for Senate in a tough Republican primary against incumbent John Cornyn.
Shein is a retailer well-known for its cheap fashion products. Its customer base is largely online, making it one of the most visited apparel websites in the world. Before President Trump’s tariffs on Chinese goods, Shein’s revenue was approaching $10 billion as consumers sought cheap products. Despite the tariffs, which closed a loophole Shein took advantage of to sustain its low prices, the company is expecting $2 billion of profit this year.
In August, the Trump administration officially began enforcing its closure of the de minimis loophole, a carveout Shein and other companies used to dodge tariffs and quality control checks on cheap imports. Shein was one of the largest beneficiaries of the de minimis loophole, according to a 2023 report from the House Select Committee on the Chinese Communist Party.
Shein was founded in China and moved its headquarters to Singapore a few years ago to help with its expansion. The company reportedly weighed moving its headquarters back to China in August to secure an Initial Public Offering in Hong Kong.
Texas’s investigation into Shein is part of a growing trend of Republican AGs using state consumer protection laws to take on Chinese companies. GOP AGs have filed lawsuits and launched investigations into numerous Chinese companies over the past few years to protect U.S. national security and curtail Chinese influence.