JOHANNESBURG—South Africa’s government said Monday that it is investigating fast-fashion company Shein following complaints from the local textile union and industry association that it may be exploiting tax loopholes to gain an unfair advantage in Africa’s most developed economy.
A spokesman for the Department of Trade, Industry and Competition declined to provide details on the investigation, but he said that it was initiated in response to concerns raised by labor and industry groups. The issues raised by the South African groups resemble complaints by manufacturers and unions in the U.S. that claim that Shein and other Chinese retailers are taking advantage of an exception in U.S. customs law that allows them to import goods without paying tariffs.
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