Why Firms Are Pivoting From China Shedding to China Maxxing

Some of China’s most successful global companies have spent years masking their origins to sidestep Western scrutiny. But that approach, called “China shedding,” has run its course — at least for the bigger players.

The surprise homecoming of online retailer Shein Group Ltd.’s founder should be the final nail in the coffin for the strategy. Last month, Xu Yangtian, who has been rarely photographed, took to the stage in the southern Chinese province of Guangdong to thank the local government and suppliers for helping the company to become a retail juggernaut. Shein is now the biggest player in the global market for bargain-priced apparel, according to GlobalData, ahead of the likes of Primark and Target Corp. Private market research firm Sacra estimates its 2025 sales at $60 billion, which would be more than Hennes & Mauritz AB and Inditex SA’s Zara combined.