GOP State AGs Probe Chinese E-Commerce Giant Temu Over Ethical Concerns

A group of 21 Republican state attorneys general has initiated an investigation into Temu, the rapidly growing Chinese online retailer, citing concerns over potential ties to the Chinese Communist Party (CCP) and alleged use of forced labor in its supply chain. The inquiry, led by Montana Attorney General Austin Knudsen, seeks to shed light on the company’s business practices and ensure compliance with U.S. laws.

The attorneys general’s action follows alarming discoveries made by the U.S. House Select Committee on the CCP last year. According to their findings, Temu admitted to lacking policies that prohibit the sale of goods from Xinjiang, a region associated with human rights abuses against Uyghur Muslims.

“We cannot turn a blind eye to the possibility of forced labor being used to produce goods sold to American consumers,” said Georgia Attorney General Christopher Carr. “This investigation aims to ensure that companies operating in our states uphold ethical standards and respect human rights.”

The coalition is demanding answers from Temu regarding its data collection practices, including whether U.S. consumer information is being shared with or requested by the CCP. They are also seeking clarification on how the company verifies that its products are not manufactured using slave labor.

Temu’s parent company, PDD Holdings, Inc., has faced accusations of links to the CCP, further fueling concerns about the potential risks associated with the platform’s rapid expansion in the U.S. market.

The attorneys general have given Temu a 30-day deadline to respond to their inquiries. The outcome of this investigation could have far-reaching implications for the company’s operations in the United States and may influence future regulations on foreign e-commerce platforms.

As the probe unfolds, it underscores the growing scrutiny of Chinese companies operating in the U.S. and the complex intersection of commerce, national security, and human rights in the global marketplace.