The news: UK regulators approved Shein’s IPO, sources told Reuters, although the listing has yet to be given the go-ahead by China’s securities commission.

Why it matters: The approval couldn’t have come at a worse time for Shein. The fast-fashion retailer is at risk of being cut off from the US, its largest market, as tariffs and the end of the de minimis exemption threaten its operating model. Unlike competitors Temu and AliExpress, Shein does not have a retail presence in China to fall back on—giving it limited ability to successfully navigate the tariff environment.

The IPO may not guarantee Shein’s survival, but it is a victory of sorts for China, which is looking to insert itself into the gaping geopolitical hole left by the US’ retreat into protectionism.