China pressures Shein against shifting its supply chain

Fast-fashion retailer Shein is facing opposition from the Chinese government over its plans to shift some production out of the country, Bloomberg News reported on Tuesday, citing people familiar with the matter.

China’s Ministry of Commerce has reached out to Shein and other companies, advising them against diversifying supply chains by sourcing from other countries, one person familiar with the matter told Bloomberg News.

Bloomberg News said it wasn’t immediately clear which other firms were contacted by the commerce ministry.

The requests came in the run-up to US President Donald Trump’s announcement on reciprocal tariffs that have sent firms scrambling for alternative ways to avoid additional import levies, the person told Bloomberg News.

Shein did not immediately respond to a Reuters request for comment on the report.

Trump’s harsher-than-expected tariffs have roiled markets globally, wiping trillions of dollars in value across assets, and elicited strong rebuke from China and additional tariffs of 34 per cent on all US goods.