Shein Faces Chinese Govt Criticism for Diversifying Production

Fast-fashion giant Shein is under fire from the Chinese government for planning to move some of its production out of China. Beijing is advising against diversifying supply chains despite ongoing trade tensions with the U.S., which have led companies to seek alternatives to heightened tariffs.

Fast-fashion giant Shein is under scrutiny from the Chinese government as it looks to shift parts of its production away from China, according to a Bloomberg News report. The move comes amidst rising global trade tensions.

The Chinese Ministry of Commerce has reportedly contacted Shein and other major companies, cautioning them against diversifying their supply chains by sourcing from other countries. Bloomberg News mentioned that it remains unclear which other firms were approached by the ministry.

The advisories came just before U.S. President Donald Trump's announcement of new tariffs, which have prompted companies to find alternative solutions to avoid increased import levies. Shein has not yet responded to requests for comment regarding this report.