Shein's Supply Chain Overhaul Stalls as U.S.-China Tariffs Escalate

Rising tariffs and Chinese government pressure force Shein to pause overseas production plans, leaving workers in Guangzhou's 'Shein village' in economic uncertainty.

• Shein has suspended plans to relocate production to countries like Vietnam following new U.S. tariff hikes and opposition from China's Ministry of Commerce.
• Chinese officials are pressuring manufacturers to remain in the country to prevent job losses and maintain China's role as a global export hub.
• Workers in Guangzhou's 'Shein village' face reduced hours and job insecurity as the fast fashion giant struggles to adapt to the shifting trade landscape.
• The closure of the U.S. de minimis tariff exemption for low-value goods from China, effective May 2, threatens Shein's low-cost business model by imposing steep new duties.
• Shein's valuation is under investor pressure, with challenges to its supply chain and business model raising questions about its long-term viability.

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Sourcing Journal South China Morning Post PYMNTS