Shein in provide chain showdown with Beijing over plans to shift manufacturing out of China

Shein in provide chain showdown with Beijing over plans to shift manufacturing out of China

Shein has reportedly run into opposition from Beijing over its plans to move production out of China in the face of Donald Trump’s tariffs.

China’s business ministry is said to have discouraged the firm from using more suppliers in other countries in the days before the US slapped blanket duties on imports.

There are fears of mass manufacturing job losses as companies opt for factories elsewhere.

After discussions with government officials, Shein paused its research trips to factories in Vietnam and other parts of South East Asia, according to Bloomberg News.

The retailer has increasingly been looking to different countries in a bid to reduce criticism of its use of Chinese labour. It already uses suppliers in Turkey and Mexico.

Trump also closed a loophole – known as ‘de minimis’ – that allows Shein and rival Temu to dodge import taxes on parcels worth less than $800 (£627). Shein has been closing in on a London listing, which would be one of the biggest UK IPO’s on record.

Stylish: China’s business ministry is said to have discouraged Shein from using more suppliers in other countries

Stylish: China’s business ministry is said to have discouraged Shein from using more suppliers in other countries

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