Can Shein survive Trump’s trade war?
As tariffs rise and China-US tensions intensify, Shein’s London IPO ambitions may not be enough to offset mounting challenges.
Published April 16, 2025
What happened #
Chinese fast-fashion juggernaut Shein has secured a green light from the U.K.’s Financial Conduct Authority for its London IPO, a move it hopes will boost investor confidence and signal global expansion.
However, the final hurdle remains: Regulatory approval from Chinese authorities, due to Shein’s ongoing dependency on a vast network of domestic manufacturers.
Despite its 2022 relocation to Singapore, Shein remains firmly tied to China’s manufacturing base. Its London listing attempt comes at a precarious time, as a new wave of tariffs and restrictions reshapes the landscape for Chinese e-tailers and merchants.
The Jing Take #
Shein’s IPO may be moving forward, but the company is navigating increasingly choppy waters. Washington’s latest tariff escalation — with duties on Chinese imports reaching as high as 145% — poses a major threat to Shein’s cost advantage and operational model.
And with the U.S. poised to end the “de minimis” tax exemption on sub-$800 shipments, one of Shein’s biggest loopholes in its cross-border business may soon close.
While sales are surging ahead of the deadline, likely due to consumer anticipation of price hikes, long-term sustainability is less certain. The brand’s reportedly reduced valuation — down to $30 billion from a peak of $100 billion, reflects investor skepticism over whether it can maintain growth in a more hostile policy environment.
Meanwhile, other Chinese players adapt #
E-commerce platforms like JD.com, Alibaba’s Freshippo, and Pinduoduo are investing billions into redirecting export-oriented brands to domestic buyers. Baidu is leveraging AI to help exporters transition via livestreaming tools, while supermarkets like Yonghui and Lianhua are fast-tracking onboarding for goods initially meant for overseas markets.
TikTok has also become a battleground. Chinese sellers are appealing directly to global consumers through videos highlighting the country’s role in luxury manufacturing, with some viral posts claiming that designer bags from European brands originate in Chinese factories. While these messages challenge luxury’s traditional narratives, they also risk undermining brand value and further straining East-West trade relations.
For Shein, the message is clear: Adapting to a new trade era won’t be solved by a splashy IPO alone. The brand must prove if it can weather external pressures from tariff uncertainty to political pushback, and still deliver value to its customers and investors.
The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.
