Fast fashion retailer Shein is reportedly reassessing the scope of its sourcing partnership with Reliance Retail Ventures Limited. As trade tensions rise globally amid new US import tariffs, Shein may increase its focus on domestic manufacturing in China.

Shein may revaluate the Reliance tie up which saw it reenter the Indian market earlier this year, The Economic Times reported, citing sources close to the development. The review comes amid escalating trade tensions between the US and China, with the latter increasing regulatory oversight to discourage domestic manufacturers from shifting production overseas.

The Shein partnership with Reliance was initially aimed at establishing the country as a key export base, India Retailing reported. However, recent geopolitical shifts. including the imposition of a 145% import duty by the US on Chinese goods, have altered the brand’s sourcing calculus.

China’s retaliatory tariff of 125% on US imports and the absence of similar relief measures for Chinese manufacturers have added further pressure on the business, Apparel Resources India reported. While the US has temporarily lifted certain tariffs on Indian goods, China has not benefitted from such exemptions, leading to concerns about Shein’s ability to diversify production into India.

The Reliance-Shein deal, announced nearly five years after Shein was banned in India, had included plans for a locally hosted app and collaboration with around 25,000 Indian micro, small, and medium enterprises. Shein had pledged to equip manufacturers with technology to support global exports.

Now, with China seeking to retain manufacturing dominance and Shein facing declining profits and a reduced valuation, the alliance’s future appears uncertain. Neither company has commented on the ongoing developments to date.

Author Credits- Isabelle Crossley, FASHION NETWORK