Shein Faces Chinese Pushback on Production Shift

Fast-fashion giant Shein is encountering resistance from the Chinese government concerning its intentions to relocate production outside the country. The Ministry of Commerce is advising Shein and other firms against diversifying supply chains by sourcing externally, aiming to maintain economic stability.

Shein, a prominent name in fast fashion, is facing challenges from the Chinese government over its proposed strategy to relocate some of its production facilities out of the mainland. Sources familiar with the development informed Bloomberg News of these new hurdles.

China's Ministry of Commerce has proactively engaged with Shein and similarly positioned companies, discouraging them from reducing their reliance on domestic production by establishing supply chains in other countries. This move is aimed at preserving the nation's economic interests.

The guidance from the ministry underscores China's attempts to maintain control over its significant manufacturing industry amidst growing global competition and shifting economic alliances.

(With inputs from agencies.)