Fast-fashion retailer Shein is facing opposition from the Chinese government regarding its plans to shift some production outside of China, Bloomberg News reported on Tuesday, citing sources familiar with the matter.
China’s Ministry of Commerce has reached out to Shein and other companies, advising them against diversifying their supply chains by sourcing from other countries. The exact identity of the other companies contacted was not immediately clear.
The ministry’s requests came in the context of US President Donald Trump’s announcement on reciprocal tariffs, which has led many firms to seek alternative strategies to avoid additional import levies.
Shein did not immediately respond to a Reuters request for comment regarding the report.
Trump’s unexpectedly harsh tariffs have caused significant disruptions in global markets, wiping out trillions of dollars in asset value and prompting China to retaliate with a 34% tariff on all US goods.
