Fast-fashion retailer Shein is facing opposition from the Chinese government over plans to shift some production out of the country in response to mounting US tariffs.
China’s ministry of commerce has reached out to Shein and other companies, advising them against diversifying supply chains by sourcing from other countries to try and avoid mounting tariffs from the US, according to Bloomberg News.
The approach from the government came in the run-up to president Donald Trump’s announcement on reciprocal tariffs that have sent firms around the world scrambling for ways to avoid additional import levies.
Bloomberg News said it wasn’t clear which other firms had been contacted by the government, alongside Shein.
US tariffs have caused markets across the world to plummet, wiping trillions of dollars in value across assets. The Chinese government rebuked Trump for the move and slapped an additional 34% tariff on all US goods.
Trump has defended his tariffs, describing them as “medicine”, despite the roiling effect they have had on stock markets across Asia, the UK, and the US.
In February, it was reported that Shein would be ramping up its production in Vietnam to mitigate the impact of rising US tariffs on its supply chain, after Trump removed the “de minimis” rule which allowed duty-free imports of low-value goods.
The retailer had hoped its Vietnamese expansion would mitigate the impact of tariffs on its business model, which is heavily reliant on production in China.
No comments yet