China pressures Shein against shifting its supply chain
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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.
Questions & Answers
Q.Which specific Chinese government body is opposing Shein's supply chain changes?
Which specific Chinese government body is opposing Shein's supply chain changes?
China's Ministry of Commerce has contacted Shein regarding its plans. They are advising against diversifying supply chains by sourcing from other countries. The article does not mention any other specific government bodies.
Q.Why is the Chinese government reportedly pressuring Shein and other companies?
Why is the Chinese government reportedly pressuring Shein and other companies?
The pressure came before US President Trump announced reciprocal tariffs. Companies were seeking alternative ways to avoid additional import levies, prompting the Ministry of Commerce to advise against diversifying supply chains out of China.
Q.Were other companies also contacted by the Ministry of Commerce regarding supply chain diversification?
Were other companies also contacted by the Ministry of Commerce regarding supply chain diversification?
Yes, the Ministry of Commerce contacted Shein and other unnamed companies. They were advised against diversifying their supply chains by sourcing from other countries, although the specific firms were not disclosed.
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