BUSINESS | French Bourgeoisie Hostility Toward Chinese Founded Fashion-Tech Businesses

Why is France's affluent class directing bitter antipathy toward the Chinese founded fashion-tech company Shein? 

In an earlier post I discussed the animosity among the collective West - United States of America, Great Britain, France, and Germany - and China, Russia, Iran, and North Korea.  

The historic Western alliance at present is in turmoil as the Trump administration recently released the annual National Security Strategy document setting new precedent in its tone towards the European Union bloc. The document does not shy away from openly criticizing European nations for what the administration describes as a "...wayward, declining powers..."Compounding matters is the major gap between the United States and Europe concerning efforts to resolve the Russia Ukraine war; which the Trump administration is accusing European officials of holding "unrealistic expectations" about the war. The text also strayed from the status quo in its position on Russia which is not mentioned as a possible threat to U.S. interests. While the document stands pat on the topic of China the administration stressing the need to "harden and strength" military capabilities in the Western Pacific "to deter potential Chineses aggression."

In spite of tensions and shifts in traditional alliances it is not without acknowledging that as a global community we are transiting from a unipolar to a multipolar world. As counties economies become more specialized - firms focusing on a narrow set of primary activities and outsourcing the balance of work and households with access to the Internet and the World Wide Web have greater access to global markets - trade and supply chains among varies counties as we have seen will continue to increase and merger into the future. As with demographics shifts across the global with India now outpacing China as the most populated country in the world and similar to Africa where a large portion of its habitants are young and birth rates continue to rise - Africa and India are also making strides in investments of their respective infrastructure. I say this to say that the old world order of a central concentration of dominants will be eliminated either by force or by rational sense. In the future relationships between countries will take a less adversarial posture and one built on the foundation of mutual benefit and shared influence.

Recently I have noticed news reports of France's draconian tactics to stifle the commercial activities of China founded company Shein. A small yet power group of entities across business, politics, and lobby groups collude to spin a sophisticated legal and media attack targeting the business practices of Chinese businesses Temu and Shein - with a special focus on Shein. Legacy fashion publication Women's Wear Daily in several articles adopted the language of France's elite describing Shein as "ultra-fast" fashion as opposed to "fast" or "accessible" fashion. New media outlet TheFashionLaw.com who also characterizes Shein and Temu as "ultra-fast" fashion and whitewash the assault against the firms in an article entitled "Making Cheap Clothes Costly: How European Lawmakers Are Fighting Fast Fashion " - the article neglects to include any European founded fast-fashion companies. At a court hearing in Paris earlier this month one of Shein's lawyers Julia Bombardier likened the well orchestrated assault by the groups as a "cabal" stating "Our client is subject of a cabal, a media cabal, a political cabal and I even say discriminatory treatment ." Ultimately, the court rejected the request from the French government to suspend the e-commerce platform. The Paris court concluded "... a complete shutdown of Shein's platform in France would be a disproportionate measure and an unjustified infringement of the company's freedom to conduct business" the court also cited Shein's responsiveness in temporarily suspending third-party vendors on its marketplace and the removal of the illicit listing. While Shein provided a statement welcoming the ruling it also reinforced its commitment to "...protecting French consumers and ensuring compliance with local laws and regulations..." The French government intends to file an appeal in the coming days. 

During a episode of the McKinsey Podcast, Imran Amed the Business of Fashion founder, CEO, and editor-in-chief summarized the place Asia traditionally held within the fashion and retail industry in respect of two key dimensions: first being the "workshop and manufacturing zone and second being the growing consumer base." Amed also identifies a third dimension, where Asia's playing a stronger and stronger role: in Asia, "we're starting to see real competitors develop, as they move further up the value chain and start becoming direct competitors to some of the brands in the West."

I would like to make two distinctions pertaining to the third dimension Amed describes; first he only identify within Asia that local companies are direct competitor for international firms and second he generalizes these firms as "the West" - I want to specify and identify European luxury conglomerates are apprehensive of Asian companies competing with them not solely in Asia but more importantly within Europe.

"Fast" or "accessible" fashion is not a new retail segment within France and it is to be presumed that there is a cross over of shoppers who may save to invest in brands like Chanel or Louis Vuitton but on a more frequent bases and without much thought splurge at the likes of a Zara. The digital channel has lower the barrier to entry for people across the globe and economic segments who love trendy fashion however are unable or unwilling to purchase from the likes of heritage European fashion companies; instead they search for comparative goods at a cost appropriate for their lifestyle. The impact of the Internet and the World Wide Web cannot be stressed enough these inventions have decentralized the market for fashion apparel and accessories goods. Asia, specifically China - dubbed the world's indispensable factory floor- with its decade long investment of its manufacturing industry across product categories is a beneficiary as its exports hit astronomical heights - despite varies countries increase in tariffs and new regulations on imported goods - are expected to continue.  

In comes Shein a Chinese founded fashion-tech company and according to Executive Chairman, Donald Tang in an interview defines the firm as a "...empowerment agent for the freedom of choice."

Shein's "on-demand" business model closely monitors consumer's behavior as it relates to search and purchases on its website and matches demand with supply by partnering with multiple small and middle size manufacturers to execute an "real-time" inventory model. This dynamic and simplified approach has resulted in little excess waste - in the low single digits and increased profitability. Shein's success has become a source of contempt and envy among France's business and political leaders -  who passed legislation aimed at "reining in "ultra-fast fashion" targeted specifically at Chinese companies. 

The upper crust's growing disdain materialized this year when a bill introduced by Anne-Cécile Violland, a member of the parliament from the unpopular Horizons party lead by even more disliked French President Emmanuel Macron, passed within the Senate. The bill at its inception was fashioned as an environmental legislation aiming to shift the whole sector towards "sustainable practices." The original bill listed European founded fast-fashion companies such as Sweden founded H&M, Ireland founded Primark, Spain founded Zara, and Chinese firms Shein and Temu. Ultimately the bill that passed was a watered down version which excluded all European firms - as a result of their fierce lobbying activity which was successful in narrowing the scope - and focus squarely on Chinese founded businesses. 

In an interview with Women's Wear Daily, Pierre Condamine, spokesperson for the Anti Fast Fashion Coalition, an umbrella group of 11 environmental organization in France described the bill's revision: "There is a sort of shift in what was supposed to be an environmental legislation, with the objective to shift the whole sector towards sustainable practices, while now its sort of becoming a protectionist text."

The revised bill which included a tax on small parcel shipped from outside of the European Union was approved by the bloc who's officials "...made it clear that this is a move to curb Chinese-founded platforms such as Shein, Temu, and AliExpress..." The new tax also coincides with the EU ending its longstanding customs duty exemptions which the bloc likes to compare to the United States revision of its de minimus rule. However, contrary to the U.S. it did not seek to target one country - China. The edited bill also seeks a total advertising ban on "ultra-fast" fashion platforms and notably makes the subjective distinction between "ultra-fast" or "ultra-express" fashion and "fast" or "accessible" fashion which excludes traditional fast-fashion companies - the new subcategory within the "fast-fashion" segmentation was designated solely for Shein and Temu. 

France's women's ready-to-wear federation formally La Fédération Française du Prêt à Porter Féminin is a lobby group which prided the passage of the bill as a "step forward" in tackling ultra-fast fashion additionally in a statement provided to WWD stated "It formalizes the long-standing collective commitment of many stakeholders to defend a fashion industry that respects workers, consumers, citizens, French businesses, and the planet." 

The degree of hypocrisy is absolutely flabbergasting - as the well orchestrated plot to weaponize the legal system and media against Chinese companies while French does not hold the same convictions when it come to European businesses accused of illegal business practices.

Last year Wall Street Journal reported LVMH Moët Hennessy Louis Vuitton one of the world's leading luxury goods conglomerate, owed Christian Dior branded products was one of many brands - Armani was also named in the report - seized during a raid on a workshop in Italy using exploited foreign labor to produce the "luxury" goods. The Italian prosecutors investigation uncovered brands that marketed their products as "Made in Italy" allegedly used many foreign workers from China in Italian "workshop" - similar to classic sweatshop conditions- who were working "under conditions that fall short of legal standards." The report goes on to say that in June 2024 Italian judges placed Manufactures Dior SRL - a unit of Dior - under a court administration after ruling that its supply chain included Chinese-owned firms in Italy that mistreated migrant workers. The condition of the workers included evidence of poor living conditions, workers were paid a little as 2 -3 euros an hour, and "electricity consumption data indicated that employees typically worked from dawn until after 9 p.m., including on weekend and holidays."A court administrations is a legal provision intended as a way to monitor companies infiltrated by organized crime groups. As of 2025 Christian Dior paid 2 million euros and agreed to numerous obligations to improve oversight of its supply chain to resolve the labor infractions.

In responds to the bill Shein's director of government relations, Fabric Layer accused France's fashion establishment of protecting legacy brands and says it will continue to lobby to amend the bill further. I would like to see some condemnation from the Chinese government on behalf of its business sector. Conversely, European fashion and accessories goods firms do not encounter this degree of resentment and ill will when growing their distribution network throughout varies Asian counties let alone China. During a presentation Layer also pointed out he legislation "punishes cost-conscious consumers and lower income households."

France under the leadership of President Emmanuel Macron who was elected in 2017 with an agenda including the abolishment of the wealth and housing taxes, lowered corporate levies, introduction of a flat tax on capital gains and stripped away job protections. Favoring France's well-to-do at the expense and increasing cost to the larger working class portion of the population. The country's economic picture this year alone has been in turmoil - instability within the government, increased energy prices, social unrest and growing distrust of the governing class. Recently, France's richest man Bernard Arnault chief executive and chairman of LVMH was in headlines for challenging a proposed "wealth tax." The author of the tax Gabriel Zucman a self described "...class traitor" is a economist. The proposal suggest to impose a 2 per cent tax on the France's "mega-rich" and claims it would raise 20 million euros from taxing about 1,800 of the country's richest household potentially enough to cover about half of the hole in the government's finances. Polls show 86 percent of people back the proposal which seems likely to be adopted as President Emmanuel Macron and Prime Minister SL content with fiscal decline, social unrest, and demands by the opposition Socialist party. In a statement to The Sunday Times Arnault describes the tax as "...an offensive that is deadly for our economy" and  Zucman's intent to "...serve his ideology (which aims to destroy the liberal economy, the only one that works for the good of all.) This is why he presents the French tax situation in a biased way..." It seems interesting that this "liberal economy" only extends to European businesses and not international firms who serve the rural working class segment. 

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