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    SpaceX came close to breaking a 56-year rocket record with back-to-back launches

    SpaceX was set to launch a Falcon 9 rocket and then a Falcon Heavy rocket from Florida as little as 45 minutes apart on Thursday evening.
    But SpaceX postponed the Falcon Heavy launch on Thursday evening, according to an FAA advisory and confirmed by a Space Force spokesperson.
    Space Force noted that the pair of SpaceX launches would have broken a record set by the Gemini 11 mission in September 1966.

    (L)A SpaceX Falcon Heavy rocket stands at pad 39A at the Kennedy Space Center several hours before a scheduled launch in Cape Canaveral, Florida, and (R) A Falcon 9 rocket stands at Cape Canaveral’s SLC-40 pad.
    Getty (L) | SpaceX (R)

    SpaceX on Thursday night came close to breaking a record that’s stood for over half a century, with back-to-back launches that had been set to fly from Florida’s Space Coast.
    The company is targeting 10:20 p.m. ET for the launch of its Falcon 9 rocket from the Space Force’s Space Launch Complex 40 (SLC-40), carrying Starlink satellites.

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    A Falcon Heavy rocket was set to lift off a couple miles away as little as 45 minutes later. But SpaceX postponed the Falcon Heavy mission, which is to deliver the Jupiter 3 satellite for broadband provider EchoStar into orbit. The launch from Launch Complex 39A (LC-39A) at NASA’s Kennedy Space Center is now scheduled to launch on Friday evening instead.

    The rockets of NASA’s Gemini 11 mission lift off on September 12, 1966. (Left: An Atlas-Agena D rocket launches from SLC-14. Right: A Titan II rocket launches from SLC-19.)
    Courtesy: NASA

    Space Launch Delta 45 is the unit of the U.S. Space Force that manages the Eastern Range: A designated U.S. rocket range for launches from either Kennedy or Cape Canaveral.
    SLD 45 noted in social media posts on Thursday that the pair of SpaceX launches could have broken a record set by the Gemini 11 mission in September 1966. That NASA mission used an Atlas-Agena D rocket and a modified Titan II rocket, which launched 1 hour, 37 minutes and 25 seconds apart.

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    “This could represent the shortest time between Earth to orbit launches from the Eastern Range in our written records,” SLD 45 wrote. “Follow along as we attempt to re-write the record books on the Space Coast!”
    Rocket launches require that regulators clear windows of time, in part due to the increasingly crowded airspace needed for each mission.
    The launches would have represented SpaceX’s 51st and 52nd this year.

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    Airlines say domestic fares are sliding and threatening to chill record revenue growth

    Airline stocks fell this week on signs of weaker domestic fares.
    Carriers still raked in record revenue in the second quarter due to strong demand.
    Meanwhile, international travel has come back in force this year, which could be a potential challenge to domestic-focused airlines.

    Scott Olson | Getty Images

    Sky-high airfare was a boon for U.S. airlines coming out of the Covid-19 pandemic.
    But airline executives are now seeing lower domestic fares as carriers’ schedules swell and customers opt for trips abroad over closer destinations that were popular during the pandemic.

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    Southwest Airlines, Alaska Airlines and American Airlines are among the carriers that have forecast slower revenue growth or weakness for the third quarter, despite strong demand.
    The NYSE Arca Airline Index is down more than 6% this week, slimming its gains to 37% so far this year. Airline shares have largely outpaced the S&P 500 this year, which is up marginally this week and has advanced 18% in 2023.
    Domestic U.S. airfare is currently averaging $258 for a round-trip ticket, down 11% from last year and 9% from 2019, according to fare-tracking company Hopper. International tickets, in comparison, are up 8% from 2022 and are 23% more expensive than 2019, averaging $958. The latest U.S. inflation report showed a sharp drop in airfare.
    The shift marks a new chapter in airlines’ recovery from the pandemic and a potential challenge to domestic-focused airlines after the peak summer travel season, which traditionally fades in mid-August when schools reopen.
    That’s happening while corporate travel demand still hasn’t recovered to pre-pandemic levels.

    Southwest on Thursday said it expects unit revenue to drop as much as 7% in the current quarter from a year ago on a 12% increase in capacity.
    An airline’s revenue per available seat mile is a measure of how much a carrier generates compared with how much capacity it is offering.
    The Dallas-based airline blamed its forecast on faster-than-usual capacity growth. Overall, Southwest still expects record revenue for the quarter, but estimated unit costs, excluding fuel, would rise between 3.5% and 6.5% from the same period in 2022.
    Southwest said it would refocus its network next year to adapt to changing travel patterns after the pandemic, such as weak business-travel demand growth. The airline’s shares dropped more than 9% Thursday, wiping out its 2023 gains.
    Meanwhile, Alaska Airlines this week forecast third-quarter revenue ranging from flat to up 3% and unit revenues down about 9% “at the midpoint,” with capacity up as much as 13% compared with last year.
    “As we approach the rest of the year and beyond, it is clear our environment is evolving as domestic leisure fares have recently started to come down from their peaks,” Alaska Airlines CEO Ben Minicucci said on an earnings call Wednesday.
    American Airlines last week said it expected unit revenues for the current quarter to fall as much as 6.5% from a year ago, but it noted full-year unit revenues would be up in the low single digits. The airline still forecast a profit for the summer quarter.
    Delta Air Lines and United Airlines’ very upbeat forecasts that topped expectations reiterated strength in international revenue, particularly trips to Europe and Asia, as they ramp up flights. More

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    Regulators unveil sweeping changes to capital rules for banks with $100 billion or more in assets

    U.S. regulators on Thursday unveiled a sweeping set of proposed changes to banks’ capital requirements to address evolving international standards and the recent regional banking crisis.
    While the heightened requirements apply to all banks with at least $100 billion in assets, the changes are expected to impact the biggest and most complex banks the most, the regulators said.

    Michael Barr (L), Vice Chair for Supervision at the Federal Reserve and Martin Gruenberg, Chair of the Federal Deposit Insurance Corporation (FDIC), testify about recent bank failures during a US Senate Committee on Banking, House and Urban Affairs hearing on Capitol Hill in Washington, DC, May 18, 2023. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)
    Saul Loeb | Afp | Getty Images

    U.S. regulators on Thursday unveiled a sweeping set of proposed changes to banks’ capital requirements to address evolving international standards and the recent regional banking crisis.
    The changes, designed to boost the accuracy and consistency of regulation, will revise rules tied to risky activities including lending, trading, valuing derivatives and operational risk, according to a notice from the Federal Reserve, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp.

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    Long expected by banks, the proposed rules seek to tighten regulation of the industry after two of its biggest crises in recent memory — the 2008 financial crisis, and the March upheaval in regional lenders. They incorporate parts of international banking regulations known as Basel III, which was agreed to after the 2008 crisis and has taken years to roll out.
    The changes will broadly raise the level of capital that banks need to maintain against possible losses, depending on each firm’s risk profile, the agencies said. While the heightened requirements apply to all banks with at least $100 billion in assets, the changes are expected to impact the biggest and most complex banks the most, they said.
    “Improvements in risk sensitivity and consistency introduced by the proposal are estimated to result in an aggregate 16% increase in common equity tier 1 capital requirements,” the regulators said in a fact sheet. Tier 1 common capital levels measure an institution’s presumed financial strength and its buffer against recessions or trading blowups.

    Long phase-in period

    Most banks already have enough capital to meet the requirements, the regulators said. They would have until July 2028 to fully comply with the changes, they said.
    The KBW Bank Index dipped less than 1% in midday trading; the index has fallen 11% this year.

    Further, in response to the failure of Silicon Valley Bank in March, the proposal would force more banks to include unrealized losses and gains from certain securities in their capital ratios, as well as compliance with additional leverage and capital rules.
    That effectively eliminates a regulatory loophole that regional banks enjoyed; while larger firms with at least $250 billion in assets had to include unrealized losses and gains on securities in their capital ratios, regional banks won a carve-out in 2019. That helped mask deterioration in SVB’s balance sheet until investors and customers sparked a deposit exodus in March.

    Higher standards

    The changes would also force banks to replace internal models for lending and operational risk with standardized requirements for all banks with at least $100 billion in assets. They would also be forced to use two methods to calculate the riskiness of their activities, then adhere to the higher of the two for capital purposes.
    “Today’s banking system has more large and complex banks than ever to support our dynamic economy,” acting OCC head Michael Hsu said in a statement. “Our capital requirements need to be calibrated to this reality: providing strong foundations for large banks to be resilient to a wide range of stresses today and into the future.”
    Regulators have invited commentary on their proposal through Nov. 30; banks and their interest groups are expected to push back against some of the new rules, saying they will boost prices for customers and force more activity into the so-called shadow banking sector.
    Trade groups including the American Bankers Association, the Consumer Bankers Association and the Financial Services Forum issued statements questioning the rationale for the stricter capital requirements.
    “There is no justification for significant increases in capital at the largest U.S. banks and no other jurisdiction is likely to adopt the approach proposed today, which will only increase the significant disparity that already exists between U.S. and foreign bank capital requirements,” Kevin Fromer, CEO of the Financial Services Forum, said in an email.
    “Regulators and other policymakers should carefully consider the harmful economic impact of this proposal,” he added. More

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    Prosecutors drop another charge against FTX co-founder Sam Bankman-Fried

    Federal prosecutors told a Manhattan judge they wouldn’t pursue a campaign finance charge against FTX founder Sam Bankman-Fried.
    It’s the second time Manhattan prosecutors have had to forgo charging the billionaire, who is accused of precipitating the collapse of his crypto exchange through a multibillion-dollar fraud.
    Bankman-Fried still faces multiple wire and securities fraud charges.

    Indicted FTX founder Sam Bankman-Fried leaves the U.S. Courthouse in New York City, July 26, 2023.
    Amr Alfiky | Reuters

    Federal prosecutors dropped a campaign finance charge against Sam Bankman-Fried, the second time they have narrowed the indictment against the founder of crypto exchange FTX .
    Prosecutors told Judge Lewis Kaplan on Wednesday that they were dropping the charge of conspiracy to make unlawful campaign contributions because they had failed to obtain permission from the government of the Bahamas for that charge when Bankman-Fried was extradited from the island nation in December.

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    The U.S. Attorney’s Office in Manhattan previously dropped another charge against him, for violating anti-bribery statutes, on the same grounds.
    The moves narrow the criminal exposure of the former billionaire, who prosecutors allege conspired to defraud investors and customers out of billions. The alleged scheme precipitated the collapse of Bankman-Fried’s FTX and sent shockwaves throughout the crypto industry.
    Prosecutors had alleged that Bankman-Fried funneled hundreds of millions of dollars in bipartisan campaign financing through two unnamed co-conspirators to avoid campaign contribution limits. The charge could have added two to five years to Bankman-Fried’s imprisonment if convicted.
    In their letter Wednesday to Kaplan in U.S. District Court in Manhattan, prosecutors wrote, “The Government has been informed that The Bahamas notified the United States earlier today that The Bahamas did not intend to extradite the defendant on the campaign contributions count.”
    “Accordingly, in keeping with its treaty obligations to The Bahamas, the Government does not intend to proceed to trial on the campaign contributions count,” prosecutors wrote.
    Since Bankman-Fried’s detention and extradition, civil and criminal charges have been brought against several exchanges, advisors and individuals for crypto-related schemes. Former FTX executives, including top lieutenants Caroline Ellison, Gary Wang and Nishad Singh, have all pleaded guilty to federal charges. They are cooperating with the government’s prosecution against Bankman-Fried, who is expected to face trial later this year. More

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    What ‘Shark Week’ can teach investors about a money ‘survival instinct’

    “Shark Week” is an annual block of TV programming on Discovery. It runs July 23 to July 29 this year.
    Perhaps the most famous shark — the fictional great white from the 1975 Steven Spielberg summer blockbuster “Jaws” — can teach investors an important lesson about behavioral bias.
    “Recency bias” is the tendency to put too much emphasis on recent events like a stock market rout when making investment decisions.

    A ‘Shark Week’ blimp flies over the San Diego Convention Center on July 23, 2022.
    Aaronp/bauer-griffin | Gc Images | Getty Images

    It’s “Shark Week,” the annual television-programming event on Discovery that stars the ocean’s apex predators. And perhaps the most famous of these fish — the fictional, man-eating great white from the 1975 thriller “Jaws” — can teach an important money-saving behavioral lesson to investors.
    Specifically, investors have a tendency to get swept away by the fear or euphoria of the recent past. This is called “recency bias,” and it’s often accompanied by financial loss.

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    This bias leads investors to put too much emphasis on recent events — say, a stock-market rout, or the meteoric rise of bitcoin or a meme stock like GameStop.
    “People need to understand that recency bias is normal, and it’s hard-wired,” said Charlie Fitzgerald III, an Orlando, Florida-based certified financial planner. “It’s a survival instinct.”

    By Wildestanimal | Moment | Getty Images

    Even so, allowing short-term emotion to guide long-term financial decisions is generally counter to investors’ best interests, as is often the case when selling stocks in a panic.
    Recency bias is akin to a common yet illogical human impulse, such as watching Steven Spielberg’s classic summer blockbuster “Jaws” and then being afraid of the water.
    “Would you want to go for a long ocean swim after watching ‘Jaws’? Probably not, even though the actual risk of being attacked by a shark is infinitesimally small,” wrote Omar Aguilar, CEO and chief investment officer at Schwab Asset Management.

    Fitzgerald equates the impulse to a bee sting.
    “If I get stung by a bee once or twice, I’m not going to go there again,” said Fitzgerald, a principal and founding member of Moisand Fitzgerald Tamayo. “The recent experience can override all logic.”

    Recency bias is largely associated with FOMO

    Here’s a recent real-world illustration.
    The financial services sector was among the top performers of the S&P 500 Index in 2019, when it yielded a 32% annual return. Investors who chased that performance and subsequently bought a bunch of financial services stocks “may have been disappointed” when the sector’s returns fell 2% in 2020, a year when the S&P 500 had a positive 18% return, Aguilar said.

    Fans celebrate the June 14, 2005, release of the “Jaws” 30th Anniversary Edition DVD from Universal Studios Home Entertainment.
    Christopher Polk | Filmmagic | Getty Images

    Among other examples posed by financial experts: tilting a portfolio more heavily toward U.S. stocks after a string of underwhelming performance in international stocks, and overreliance on a mutual fund’s recent performance history to guide a buying decision.
    “Short-term market moves caused by recency bias can sap long-term results, making it more difficult for clients to reach their financial goals,” Aguilar said.
    The concept generally boils down to fear of loss or a “fear of missing out” — or FOMO — based on market behavior, said Fitzgerald.
    More from Personal Finance:’We’re all crazy when it comes to money,’ advisor saysWhy our brains are hard-wired for bank runsThe fear of missing out can be a killer for investors
    Acting on that impulse is akin to timing the investment markets, which is never a good idea. It often leads to buying high and selling low, he said.
    Investors are most vulnerable to recency bias, he said, when on the precipice of a major life change such as retirement, when market gyrations may seem especially scary.

    What’s in a well-diversified portfolio

    Long-term investors with a well-diversified portfolio can feel confident about riding out a storm instead of panic selling, however.
    Such a portfolio generally has broad exposure to the equity markets, via large-, mid- and small-cap stocks, as well as foreign stocks and maybe real estate, Fitzgerald said. It also holds short- and intermediate-term bonds, and maybe a sliver of cash, he added.

    Investors can get this broad market exposure by buying various low-cost index mutual funds or exchange-traded funds that track these segments. Or, investors can buy an all-in-one fund, such as a target-date fund or balanced fund.
    One’s asset allocation — the share of stock and bond holdings — is generally guided by principles such as investment horizon, tolerance for risk and ability to take risk, Fitzgerald said. For example, a young investor with three decades to retirement would likely hold at least 80% to 90% in stocks. More

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    Bud Light maker Anheuser-Busch to lay off hundreds of corporate staff

    Anheuser-Busch InBev, the parent company of Bud Light, announced it will lay off about 350 employees, or less than 2% of its corporate staff, across the U.S.
    The layoffs will not affect employees such as brewery and warehouse staff, drivers and field salespeople, among others, the company said.
    Sales of Bud Light have fallen after conservative boycotts over the company’s partnership with transgender influencer Dylan Mulvaney and following a corporate response to the backlash that others considered inadequate.

    An employee adjusts bottles of Bud Light beer at an Anheuser-Busch InBev facility in Virginia, Aug. 8, 2018.
    Andrew Harrer | Bloomberg | Getty Images

    Beverage giant Anheuser-Busch InBev announced it will lay off hundreds of corporate employees as sales of its flagship lager Bud Light falter.
    In a statement to CNBC on Thursday, a company spokesperson said the job cuts affect less than 2% of U.S. employees. Anheuser-Busch has about 18,000 employees nationwide. The layoffs will include about 350 of those people.

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    The company said it will cut positions across every corporate function. Anheuser-Busch added the changes will “simplify and reduce layers within its organization.”
    The layoffs will not affect employees such as brewery and warehouse staff, drivers and field salespeople, among others, the company added.
    “While we never take these decisions lightly, we want to ensure that our organization continues to be set for future long-term success,” Anheuser-Busch CEO Brendan Whitworth said in a statement. “These corporate structure changes will enable our teams to focus on what we do best — brewing great beer for everyone and earning our place in the moments that matter.”
    Bud Light sales have sagged following a conservative boycott over its March Madness partnership with transgender social media influencer Dylan Mulvaney. The company faced backlash from other consumers, and Mulvaney herself, over its decision not to defend the collaboration.
    Amid the uproar, shares of Anheuser-Busch have dipped more than 2% this year, versus the S&P 500’s nearly 20% gain.

    In May, Bud Light lost its top spot in the U.S. beer market to Constellation Brands’ Modelo. The brand held 8.7% of overall beer sales for the four weeks ending July 1, according to data shared by consulting firm Bump Williams. Bud Light had 7% market share during that same period, the data found.
    The firm also found Bud Light sales dropped 28% for the week ending June 24 when compared with the same period last year.
    Anheuser-Busch is also the target of a government investigation led by Florida Gov. Ron DeSantis. Last week, DeSantis said he instructed the State Board of Administration to immediately launch a review into whether Bud Light’s parent company breached its shareholder duties over its partnership with Mulvaney.
    DeSantis suggested the probe could lead to a lawsuit on behalf of the shareholders of Florida’s pension funds. Florida has $53 million worth of stock in Anheuser-Busch.
    “Anheuser-Busch InBev takes our responsibility to our shareholders, employees, distributors and customers seriously,” a spokesperson for the company told CNBC in a statement last week.
    “We are focused on driving long-term, sustainable growth for them by optimizing our business and providing consumers products to enjoy for any occasion,” the spokesperson added.
    — CNBC’s Kevin Breuninger contributed to this report. More

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    McDonald’s is creating a spinoff restaurant brand called CosMc’s

    McDonald’s teased a new spinoff restaurant brand it’s creating.
    The company will test CosMc’s in a handful of sites in “a limited geography” in early 2024.
    CosMc is an alien from outer space who craves McDonald’s food and appeared in its advertisements decades ago.

    1980s McDonald’s Commercial screenshot featuring CosMc.
    Source: McDonald’s | YouTube

    McDonald’s is creating a spinoff restaurant chain called CosMc’s, executives said Thursday.
    The fast-food giant shared few details about the project during its second-quarter earnings call.

    “CosMc’s is a small format concept with all the DNA of McDonald’s, but with its own unique personality,” McDonald’s CEO Chris Kempczinski said.
    The company will test CosMc’s in a handful of sites in “a limited geography” in early 2024. McDonald’s said it will share more details about those plans at its investor day in December.
    The name for the new brand comes from CosMc, a McDonaldland mascot who appeared in advertisements in the late 1980s and early 1990s. CosMc is an alien from outer space who craves McDonald’s food.
    The brand will revive CosMc after the return of another McDonald’s mascot, Grimace, jolted its U.S. business. In June, the burger chain introduced the Grimace Birthday Meal, which included a bright purple milkshake.
    Grimace and his combo meal went viral on social media, driving traffic and sales for U.S. restaurants.

    “This quarter, if I’m being honest, the theme was Grimace,” Kempczinski said.
    McDonald’s past endeavors to expand beyond its primary business haven’t been successful. In the late 1990’s, it bought Donatos Pizza and Boston Market and a stake in a fledgling Chipotle Mexican Grill.
    Less than a decade later, it had divested from all three, which had become distractions as McDonald’s struggled. Chipotle and McDonald’s also butted heads over franchising plans and drive-thru lanes. More

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    Shein says it was profitable in the first half of the year as U.S. IPO rumors swirl

    Shein’s Executive Vice Chairman Donald Tang told investors the company reached record profitability in the first half of 2023, driven by U.S. sales momentum, according to a letter obtained by CNBC.
    Tang also expanded on the company’s marketplace strategy and said the total value of merchandise sold since the beginning of 2023 has tripled to nearly $100 million in Brazil.
    The fast-fashion retailer plans to launch marketplaces in Mexico, Italy and Spain, among other locales.

    Customers hold shopping bags outside the Shein Tokyo showroom in Tokyo, Nov. 13, 2022.
    Noriko Hayashi | Bloomberg | Getty Images

    Shein notched its highest profit ever during the first half of this year, the company told investors in a letter, as rumors swirl over whether the fast-fashion juggernaut will file for a U.S. initial public offering.
    The missive Wednesday from Executive Vice Chairman Donald Tang, which was obtained by CNBC, noted sales volume growth accelerated and profits improved during the first half of 2023 compared with the latter half of 2022.

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    “We recorded the highest first half net profit in the company’s history, compared to a near break-even during the same period in 2022,” Tang wrote in the letter. “In particular, our continued momentum in the U.S. reinforces our leading position in the market.” 
    The Chinese apparel company has used its wide selection of low-priced dresses, crop tops and jeans to win over Gen Z and millennial shoppers and cement itself as a leading retailer in the crowded fast-fashion space. 
    The company brought in $23 billion in sales in 2022 and is now worth $66 billion, according to a May report from The Wall Street Journal, which cited people close to the company. 
    Shein has long focused on churning out thousands of new styles based on the latest trends, but the company has also worked to grow its marketplace. 
    The program brings in third-party vendors who sell a wide variety of goods to Shein’s customers. It allows the retailer to boost its revenue, deliver products faster and capture new shoppers without the headache of production and inventory management. 

    In the letter, Tang delved into Shein’s marketplace strategy and its recent launch in Brazil and the U.S. He told investors the total value of merchandise sold since the beginning of 2023 has tripled to nearly $100 million in Brazil, with 6,000 active marketplace sellers. 
    “This now makes up over one-third of Brazilian total [gross merchandise value],” Tang noted. “In addition, we are continuing to expand the product categories on our marketplace beyond fashion and apparel to other categories, including home appliances and other home products.” 
    Shein announced the launch of its marketplaces in Brazil and the U.S. in May. The company also has plans to start marketplaces in Mexico, along with Germany, Spain, France and Italy. 
    Tang didn’t disclose how the program has fared so far in the U.S. 

    IPO rumors swirl as congressional scrutiny intensifies 

    Shein, which is reportedly mulling a U.S. public offering, faces mounting scrutiny over its trade practices and supply chain, along with accusations over intellectual property infringements and the use of forced labor. The company denied the IP accusations and has said it has “zero tolerance” for forced labor.
    In June, the U.S. House Select Committee on the Chinese Communist Party released a report criticizing Shein’s use of the de minimis rule, which allows retailers to import products into the U.S. duty-free and with less scrutiny as long as the packages are valued under $800. 
    On Tuesday, Tang sent a letter to the American Apparel and Footwear Association calling on the industry to work toward reforms to the de minimis rule. He told investors in the Wednesday letter that Shein has followed the law as written, but it’s “simply not critical to the success” of the business. 
    “Reforms should create a more level, transparent playing field — one where all retailers play by the same rules, and where the rules are applied evenly and equally, regardless of where a company is based or ships from,” Tang wrote Wednesday. “We welcome the opportunity for constructive engagement with Congress, the Biden Administration, and others in the industry to determine the specific reforms needed.” More