Reuters reported on 14 September 2026 that some buyers who shifted production or sourcing out of China to dodge higher U.S. tariffs are restoring Chinese capacity after finding overseas ecosystems hard to replicate. The piece, recirculated by regional outlets into late September, stresses there is not yet hard aggregate data on how much volume is returning.
Case examples include Dawang Metals (Dandong), which lost then regained U.S. agricultural-machinery orders after a customer's India move hit problems, and outdoor-furniture exporter Jin Chaofeng (Hangzhou), who closed a Ho Chi Minh City workshop opened in 2024 and returned production to China, citing equipment gaps and the need to import basic parts such as screws and moulds from China. Jin said once all costs were counted, the overall difference was small.
People familiar with the matter told Reuters that U.S. retailer Target moved some orders back to Chinese suppliers because of supply-chain disruptions and production constraints (value and duration undisclosed). Shein is scaling back some Vietnam operations, according to people familiar with its operations there. Target and Shein did not immediately comment.
Economist Intelligence Unit estimates cited for July put effective U.S. tariff rates near 20% for China, versus about 6.1% for Vietnam, 13.4% for Indonesia and 4.5% for Thailand; EIU said that advantage narrowed as Washington extended tariffs more widely. Beyond tariffs, buyers also cited power reliability: Poland-based DST Pack sources 80% from Shenzhen and keeps U.S./Europe backups that cost two to three times more per unit. Not all exporters see U.S. demand return; a Ningbo gift/sports agent said competition remains intense and orders have not risen.