Mumbai, April 15, 2025 – Reliance Retail’s global sourcing pact with Chinese fast-fashion giant Shein is teetering as Beijing urges local firms to keep production home amid a raging US-China trade war, with US tariffs on Chinese goods hitting 145%. The deal, inked February 2025 to make India a Shein manufacturing hub, faces renegotiation—scaling back plans to integrate 25,000 Indian MSMEs into its supply chain, per Times of India.
Shein’s return to India after a 2020 ban aimed big—Reliance’s app revived the brand, targeting $10 billion in exports by 2030 (The Indian Express). But China’s push to curb overseas shifts, fearing US tariff dodges, has chilled plans. “India was key—now it’s dicey,” an insider told The Economic Times. Trump’s 90-day tariff pause for India—keeping duties at 10%—spared local brands, but Shein’s China plants face a $60 billion hit (Reuters). X buzzes—“Reliance got played!”—while some see opportunity: “India’s fashion can rise!” (post:1).
The stakes are high—India’s $10 billion fast-fashion market could hit $50 billion by 2031 (Redseer). Shein’s tech and Reliance’s reach promised jobs, but 70% of India’s apparel inputs still come from China (The Hindu). “Tariffs choke us—local looms aren’t ready,” a Surat vendor said (Business Standard). Beijing’s rare earth curbs and Boeing halt signal more blows—India’s dodging direct fire, but global ripples sting (NDTV). Reliance shares dipped 1% Monday—$215 billion valuation holds, but nerves show (Times of India).
For India, it’s a fork—pivot to self-reliance or lean on China’s scraps? Will Reliance rework the deal, or watch Shein shrink?
