Shein’s plans to move some production outside China face resistance from Beijing, as rising U.S. tariffs prompt a supply chain rethink.

Shein's efforts to shift some of its production outside of China have encountered resistance from China. Bloomberg News said on April 8 that the Chinese government is doing this in an attempt to keep manufacturers from fleeing the nation in the wake of additional U.S. tariffs.

China's Ministry of Commerce has spoken with Shein and other businesses to discourage them from diversifying their supply chains by getting items from other nations, a person with knowledge of the situation told Bloomberg.

According to this source, the requests were made before President Donald Trump's announcement of "reciprocal tariffs" on nations such as China, which prompted businesses to look for ways to evade the taxes. According to a second source, Shein has had to take steps like ceasing the scouting trips it organized for its main Chinese factory suppliers in countries like Vietnam.

According to the research, suppliers are under pressure to shoulder the majority of the tariff burden or think about moving production to a different location in order to reduce costs because the majority of Chinese goods are subject to a tax of at least 54% when they reach the United States.

China's status as a key expert hub is in jeopardy due to the tariffs. Due to the expiration of tariff exemptions on small shipments, Shein and Temu, its rival fast fashion brand, will have to raise the prices of their products. For American consumers who had flocked to those stores rather than Amazon, this will probably result in higher costs.