The Trump administration's recent tariffs and the end of the de minimis exemption have led to numerous garment factories in southern China, particularly in "Shein Village", going idle. This shift is causing severe economic strain in the region, with reports of unsold garments piling up and order volumes from Shein declining sharply. The new import tax rules, set to take effect on May 2, will affect all shipments, complicating the operational landscape for online retailers. Suppliers are advised to move operations to Vietnam, but many smaller entities lack the resources to do so, leading to closures.
"Orders from Shein have fallen this year, and our sales are down by a lot," a worker at one workshop employing around 20 people told the Japanese news agency Nikkei.
"Workshops have closed all over the place in just two months," Li Lianghua, a business owner originally from Hunan province, told Nikkei.
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