Shein to invest £1bn in Guangdong despite global trade tensions

In a rare step into the spotlight, Shein’s reclusive founder, Xu Yangtian, has reaffirmed his empire's deep-rooted ties to China.

Speaking at a high-level forum in Guangzhou on Tuesday, the billionaire—often known as Sky or Chris Xu—pledged a staggering 10 billion yuan (£1.08bn) to build a state-of-the-art fashion hub in Guangdong.

Despite the company’s recent move to relocate its headquarters to Singapore and its pursuit of a Western stock market debut, Xu was clear that Shein will "remain firmly rooted in Guangdong and build a world-class fashion industry cluster."

Xu’s public show of loyalty comes at a delicate time. He praised the "world-class business environment" fostered by local authorities, noting that the "nourishment" from the region has been "inseparable" from Shein's success.

However, the road ahead remains bumpy. Shein is currently navigating a minefield of global challenges, from President Trump’s aggressive trade tariffs to an EU investigation into platform safety and controversial product listings.

Beyond politics, the brand continues to face fierce criticism regarding its environmental footprint and labour practices.

Recent protests in Paris highlighted growing European unease, yet Shein is pressing ahead with plans to open more French outlets this week.

By characterising Guangdong as "fertile ground" for future digital innovation, Xu is signalling that while the brand sells to the world, its heart and manufacturing muscle remain firmly in China.

This strategic pivot back to his roots suggests a desire to secure domestic support while weathering storms abroad.