China’s government is reportedly urging fast-fashion giant Shein to slow down its plans to move production out of the country, as Beijing looks to contain a growing wave of manufacturing relocations triggered by mounting US trade tensions. The Ministry of Commerce has asked Shein and other major exporters to reconsider expanding supply chains outside China, especially in the wake of fresh tariff threats by former US President Donald Trump.

In response to the government’s intervention, Shein has suspended supplier scouting trips to Vietnam and other Southeast Asian countries, halting efforts to diversify its production base. The company had been exploring low-cost manufacturing alternatives in the region amid rising labor costs and regulatory scrutiny in China. However, Beijing’s request signals its growing concern over potential job losses and economic strain if more exporters seek to shift operations abroad.

The move also comes as Trump vows to implement sweeping ‘reciprocal tariffs’ on imports if re-elected, escalating trade uncertainties that already prompted several Chinese manufacturers to explore alternative hubs like India, Bangladesh, and Indonesia. Beijing’s appeal to Shein underscores the tension between national industrial policy goals and exporters under pressure to manage rising costs and navigate global trade risks.

While Shein has yet to comment publicly, analysts say China’s stance reflects a broader strategy to preserve its manufacturing dominance and employment levels, even as it faces growing competition from neighboring low-cost economies and shifting global trade dynamics.