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Shein received UK government approval to debut on the stock exchange
Now he just has to wait for the Chinese authorities' approval
Lifestyle
April 14th, 2025
April 14th, 2025
A few days ago, the Chinese fast fashion giant Shein received approval from the UK’s Financial Conduct Authority for its debut on the London Stock Exchange. It’s a huge step for the company, which began the entire process last June. Like every business move in recent months, the brand's plans must also overcome the hurdles imposed by Trump’s tariffs, the American President who, since taking office last January, has imposed heavy duties on all exports. On Chinese goods, the United States currently imposes a staggering 145% tax, along with stricter rules on the country’s duty-free shipments. Shein has confirmed to the Chinese government that it received FCA approval and now must only wait for the China Securities Regulatory Commission to support its stock market entry. Until Trump’s tariffs, the company was experiencing a thriving period, with sales in over 150 countries and a valuation that, in 2023, reached $66 billion. The problem now is that the tariffs imposed on shipments to the United States (one of Shein’s most important markets) risk eliminating the very characteristic that allowed the brand to become a phenomenon: low prices.
@itsalllpolitics What’s happening: Trump just signed an executive order to shut down a sneaky little trade loophole that let ultra-cheap goods from China skip out on tariffs. This loophole, called the de minimis exemption, allowed packages under $800 to enter the U.S. duty-free — which Shein and Temu have definitely been taking full advantage of. Good news: These super environmentally UNFRIENDLY, questionably-made, underpaid-labor-powered companies are finally getting checked. The U.S. government will now actually collect proper tariff revenue from their endless stream of cheap goods. More money in federal pockets, fewer freebies for massive foreign e-retailers. Bad news: You might not be able to order $5 hauls of questionable crop tops anymore. Oopsie! Prices are gonna go up, and shipping might take longer. Zoom in: Starting May 2, shipments under $800 from China — if not sent through the official postal system — will no longer be exempt from tariffs. And for those that are sent through the postal network? They’ll get slapped with a duty of 30% of the value or $25 per item — doubling to $50 after June 1, 2025. Why it matters: Critics say the loophole crushed American businesses. Forever 21 is literally shutting down stores and partly blames Shein and Temu for it. Meanwhile, free-market folks argue this move will raise prices for U.S. consumers. #tariff #trumptariff #tax #imports #shien #temu original sound - Itsallpolitics
Although Shein moved its headquarters to Singapore in 2022, it now has to wait for approval from Chinese authorities because most of the production centers it works with are in China. None of them are owned by the company and there are thousands of factories, about 5,800 third-party manufacturers, which forced Shein to request Beijing’s approval for the listing. The decision will therefore follow Beijing’s rules for Chinese companies operating abroad, explained an external source to Reuters, applied on a basis of “substance over form”. Based on this, authorities outside of the CSRC such as the National Development and Reform Commission or the cybersecurity regulatory authority could influence China’s final decision regarding the company’s stock market debut, since they oversee foreign stakes in local businesses.
@venetialamanna Falling Apart At The Seams… After being rejected by the USA, Shein is ploughing ahead with its proposal to list on the London Stock Exchange. This is why #SayNoToShein is campaigning for the new Labour government to block Shein's planned IPO, pending a thorough investigation into Shein’s labour practices, environmental impact and tax arrangements. It’s time to say no to companies that violate workers rights, exacerbate climate breakdown and avoid taxes. It’s time to Say No to Shein. TAKE ACTION Sign the Say NO to Shein petition (linked on my page) Sources The rise of fashion giant Shein [BBC News] Shein Is the World’s Most Popular Fashion Brand [Time] Market share of the leading fast fashion companies in the US [Statista] Shein: Fashion’s Biggest Polluter in Four Charts [BoF] Shein Revenue and Usage Statistics [Business of apps] Inside The Shein Machine [Channel 4] Inside the Chinese factories fuelling Shein's success [BBC] Shein finds child labour in its supply chain [Guardian] Shein clothes mostly made of polyester [Reuters] Shein denies alleged ‘widespread’ chemicals [Just Style] British Lawmakers Blast Shein at Hearing [Sourcing Journal] Shein is set to list on LSE by mid-year [The Industry Fashion] Meet Shein's typical shopper [Business Insider] Shein is officially the biggest polluter in fast fashion [Yale Climate Connections] This video was externally fact-checked using a methodology seeking third party criticism from diverse sources, cross-checking at least three reputable sources for each claim within the past 4 years for relevance, and was mindful of bias and conflict of interests, reviewing official company statements for omissions and contradictions. NB: Shein’s limited public disclosures and hidden corporate history present significant barriers to transparency. #Shein #SheinCares #SustainableFashion #ClimateAction #Sustainability original sound - Venetia La Manna
The main problem that could hinder Shein’s race to the London Stock Exchange concerns Trump and his signing of the de minimis repeal. Starting from May 2, small shipments (with a total value under $800) from China and Hong Kong will no longer be able to enter the United States duty-free – a factor that significantly impacted Shein’s low prices in America. In response to this change, Shein has moved to find suppliers outside the country, in Brazil, Turkey, and Vietnam, but the Chinese government, fearing that the move could greatly affect the unemployment rate, is opposing the relocation. The company’s listing in London may be further postponed to the second half of 2025, several sources told Reuters. Last year, Shein even tried to go public in the United States, a project it soon had to abandon as the country’s lawmakers were ready to investigate alleged labor and child labor accusations in the company’s supply chain. Faced with all these obstacles, last February Shein was ready to reduce its valuation to $50 billion, $16 billion less than its valuation two years earlier. To find out what awaits Shein’s future, we’ll have to wait for the decision of the CSRC (and the other authorities involved in the matter).
