{"id":55442,"date":"2025-04-22T00:26:51","date_gmt":"2025-04-22T04:26:51","guid":{"rendered":"https:\/\/lakelandgazette.info\/news\/?p=55442"},"modified":"2025-04-22T00:27:12","modified_gmt":"2025-04-22T04:27:12","slug":"chinese-garment-factories-that-supply-shein-shut-down-amid-trump-tariffs-there-are-only-risks-to-doing-business-with-the-us-now","status":"publish","type":"post","link":"https:\/\/lakelandgazette.info\/news\/2025\/04\/22\/chinese-garment-factories-that-supply-shein-shut-down-amid-trump-tariffs-there-are-only-risks-to-doing-business-with-the-us-now\/","title":{"rendered":"Chinese garment factories that supply Shein shut down amid Trump tariffs: \u2018There are only risks to doing business with the US now\u2019"},"content":{"rendered":"\n

Dozens of garment factories in a manufacturing hub in southern China known as \u201cShein Village\u201d have gone idle in recent weeks as a result of the Trump administration\u2019s move to impose tariffs and end the so-called \u201cde minimis\u201d exemption that allowed online retailers to sell cheap, duty-free goods to Americans.<\/p>\n\n\n

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Businesses located in Guangzhou\u2019s Panyu district, the home of once-bustling workshops that supply the Chinese fast-fashion giant Shein, have gone quiet while piles of unsold garments are stacked inside, according to workers.<\/p>\n\n\n\n

Until recently, these goods frequently made their way directly to American consumers who bought them at a fraction of the cost of clothes that are sold by US-based retailers thanks to a tax exemption for international shipments valued at $800 or less.<\/p>\n\n\n\n

\u201cOrders from Shein have fallen this year, and our sales are down by a lot,\u201d a worker at one workshop employing around 20 people told the Japanese news agency Nikkei.<\/p>\n\n\n\n

Trump\u2019s removal of the de minimis policy, which goes into effect on May 2, means all shipments regardless of size now face import taxes.<\/p>\n\n\n\n

The policy had enabled online retailers such as Shein and Temu to keep prices competitive in the American market, crucially underpinning their business model.<\/p>\n\n\n\n

The shift places additional pressure on China\u2019s already struggling economy, which has been beset by problems \u2014 most notably in its weakening real estate sector.<\/p>\n\n\n

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Economic growth remained stagnant at 5.4% in the first quarter of this year, showing no improvement from the previous quarter.<\/p>\n\n\n\n

as \u201cShein Village\u201d have gone idle in recent weeks. The image above was taken in June 2024. AFP via Getty Images<\/p>\n\n\n\n

\u201cWorkshops have closed all over the place in just two months,\u201d Li Lianghua, a business owner originally from Hunan province, told Nikkei.<\/p>\n\n\n\n

In light of the burgeoning trade war, Shein has encouraged its suppliers to relocate operations to Vietnam as part of a strategy to mitigate the impact of Trump\u2019s policies.<\/p>\n\n\n\n

However, smaller suppliers without the financial capacity to relocate have instead shut down completely.<\/p>\n\n\n\n

Li himself has ceased accepting orders from Shein, shifting his sales strategy toward direct marketing on social media platforms.<\/p>\n\n\n\n

The situation is similarly bleak in Dongguan, a manufacturing city east of Guangzhou where factories supplying leather goods and bags to US companies had already experienced declining business even before Trump\u2019s recent tariff decisions.<\/p>\n\n\n\n

One factory in Dongguan lost contracts worth $150,000 annually from four major American clients by the end of 2024.<\/p>\n\n\n\n

\u201cWe have no prospects of winning new US contracts, so we have to give up,\u201d said Liu Xiaodong, who recently took over the factory.<\/p>\n\n\n\n

\u201cThere are only risks to doing business with the US now.\u201d<\/p>\n\n\n\n

Despite these setbacks, Liu\u2019s business remains viable, generating around $3.4 million in annual sales, mostly from Asian markets.<\/p>\n\n\n\n

Liu indicated plans to further increase business within Asia, highlighting the quicker and more affordable shipping options available in nearby markets like Japan and Singapore.<\/p>\n\n\n\n

Although Chinese exports to the US surged by over 9% in March as businesses rushed shipments ahead of the new tariffs, industry insiders predict a significant downturn starting this month, when total tariffs of 145% on Chinese imports fully kick in.<\/p>\n\n\n\n

Deflationary trends within China could ripple through other markets as Chinese manufacturers seek new customers outside the US, intensifying competition and potentially triggering widespread price reductions.<\/p>\n\n\n\n

\u201cPrice competition in exports to Asia will intensify,\u201d warned a Chinese manufacturing executive, signaling challenging times ahead for global trade dynamics.<\/p>\n","protected":false},"excerpt":{"rendered":"

Dozens of garment factories in a manufacturing hub in southern China known as \u201cShein Village\u201d have gone idle in recent weeks as a result of the Trump administration\u2019s move to impose… <\/p>\n","protected":false},"author":2,"featured_media":55444,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"17","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","inline_featured_image":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"wpai_generated_summary":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":true,"token":"eyJpbWciOiJodHRwczpcL1wvaTAud3AuY29tXC9sYWtlbGFuZGdhemV0dGUuaW5mb1wvbmV3c1wvd3AtY29udGVudFwvdXBsb2Fkc1wvMjAyNVwvMDRcL1NjcmVlbnNob3QtODlhLTIud2VicD9maXQ9NTIzJTJDMzc0JnNzbD0xIiwidHh0IjoiQ2hpbmVzZSBnYXJtZW50IGZhY3RvcmllcyB0aGF0IHN1cHBseSBTaGVpbiBzaHV0IGRvd24gYW1pZCBUcnVtcCB0YXJpZmZzOiBcdTIwMThUaGVyZSBhcmUgb25seSByaXNrcyB0byBkb2luZyBidXNpbmVzcyB3aXRoIHRoZSBVUyBub3dcdTIwMTkiLCJ0ZW1wbGF0ZSI6ImhpZ2h3YXkiLCJibG9nX2lkIjoxNjMwNDA2NjF9.cb7u-lit7aOf__FSeTDhzs7ZbCa4E19nStBy9EXoOLsMQ"},"version":2,"attached_media":[{"id":55444,"url":"https:\/\/lakelandgazette.info\/news\/wp-content\/uploads\/2025\/04\/Screenshot-89a-2.webp","type":"image\/png"}]},"_wpas_customize_per_network":false},"categories":[17],"tags":[11387],"class_list":["post-55442","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regional-and-world-news","tag-chinese-garment-factories-that-supply-shein-shut-down-amid-trump-tariffs-there-are-only-risks-to-doing-business-with-the-us-now"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/posts\/55442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/comments?post=55442"}],"version-history":[{"count":1,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/posts\/55442\/revisions"}],"predecessor-version":[{"id":55445,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/posts\/55442\/revisions\/55445"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/media\/55444"}],"wp:attachment":[{"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/media?parent=55442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/categories?post=55442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/tags?post=55442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}