The news: The US-China trade war is accelerating Shein’s push to diversify its manufacturing base.

The fast-fashion giant and Indian partner Reliance Retail plan to begin exporting India-made, Shein-branded apparel within six to 12 months, Reuters reports.

The details: The companies aim to boost Shein’s Indian supplier network from 150 to 1,000 within a year. The expansion is designed to make India a strategic manufacturing hub—serving both the domestic market and global platforms like Shein’s US and UK websites—as rising tariffs and geopolitical tensions complicate Chinese sourcing.

The context: Shein first launched in India in 2018, but its app was banned in 2020 during a broader crackdown on Chinese tech firms.

• It reentered the market in February via a licensing deal with Reliance Industries, which now sells domestically produced Shein-branded apparel via SheinIndia.in. Unlike other Shein sites that rely heavily on China-based suppliers, the Indian platform primarily features locally made goods.
• While Shein told Reuters its partnership with Reliance is limited to brand licensing for domestic sales, sources say the company is preparing to sell India-made apparel on international sites—a potential shift in global supply strategy.

Our take: The trade war has hit Shein hard in the US.

• The Trump administration’s move to end de minimis exemptions for China forced Shein to hike prices, which subsequently led sales to fall.
• Shifting production to India may mitigate some of that risk, especially as Shein pursues a delayed IPO—now reportedly targeting Hong Kong after hitting roadblocks with Chinese regulators.

Still, the strategy carries real risks.

• Shein—which has faced allegations over the use of forced labor to produce its goods in China (a claim it has long denied)—could face fresh scrutiny over reports of forced and child labor on cotton farms in India.
• At the same time, a spike in de minimis shipments from India could invite fresh scrutiny in the US, where lawmakers are already wary of loopholes in cross-border ecommerce.

Go further: Check out our FAQ: How the US-China Trade War Is Affecting TikTok Shop, Temu, and Shein and Impact of Tariffs on US Businesses.