What: Amid escalating US-China trade tensions, Shein's leadership commits to supply chain continuity and ethical manufacturing practices, despite facing increased customs duties and human rights concerns.

Why it is important: The intersection of trade policy, labor practices, and supply chain resilience highlighted by Tang's statements demonstrates how geopolitical tensions are forcing fundamental changes in retail business models, particularly for companies straddling US and Chinese markets.

Donald Tang's visit to France marks a crucial moment for Shein as the company navigates complex international challenges. The executive chairman confidently asserts that US tariffs will not impede their ability to serve their 90 million American customers, emphasising the company's adaptable business model. Tang's commitment to maintaining supply without price increases draws parallels to their successful operations during the Covid pandemic. On the contentious issue of forced labour, particularly concerning the Xinjiang region, Tang emphasises Shein's zero-tolerance policy and implementation of International Labor Organization standards. The company's approach includes unannounced factory audits and a strict code of conduct for suppliers. However, NGOs like Public Eye challenge these claims, citing evidence of 75-hour work weeks at some subcontractors. Amnesty International further advocates for comprehensive human rights checks in Xinjiang operations, calling for either verified compliance or suspension of activities in the region.

IADS Notes: The landscape for fast-fashion retailers has transformed dramatically since early 2025. In February, Trump's elimination of the $800 de minimis rule  forced Shein to offer 30% higher procurement prices to relocate manufacturing to Vietnam . While the company demonstrated resilience with doubled profits in early 2024 , mounting pressures led to suspended operations in Vietnam  and a delayed IPO with reduced valuation to $50 billion . Tang's assertions about supply chain resilience come amid implementation of stricter cotton sourcing requirements  and the launch of a €5 million sustainability foundation , reflecting the industry's broader shift toward ethical compliance and supply chain transparency.

Donald Tang, CEO of Shein, asserts stance on customs duties and forced labor policies.