China defends trade practices as France moves to regulate fast fashion

By Gong Weiwei

(ECNS) -- A recent bill by the French National Assembly targeting fast fashion has ignited debate. The legislation, which would penalize fast fashion companies and ban their advertisements, was unanimously approved by the Senate committee last Wednesday and is set for debate in May.

Critics argue that the bill (PROPOSITION DE LOI), under the guise of environmental protection, specifically targets Chinese fast fashion e-commerce giants like SHEIN and Temu, serving as a form of trade protectionism in violation of World Trade Organization (WTO) principles.

France's fast fashion bill targets Chinese giants, violates WTO free trade principles

The proposed French bill targeting fast fashion comes amid the rapid expansion of Chinese platforms including SHEIN, Temu, and AliExpress, which have gained immense popularity among French consumers.

Based on data from 700,000 users, a study by shopping app Joko shows that SHEIN became the most purchased brand in France in 2024, overtaking European second-hand clothes app Vinted, which held the top spot since 2020. The study also found that Temu's sales grew by 178 percent year-on-year. At the same time, SHEIN and Temu now handle more parcels in France than Amazon.

In fashion, SHEIN's 2023 sales in France exceeded those of H&M, Primark, and Kiabi, coming second only to Zara, according to French consumer magazine LSA.

French Trade Minister Veronique Louwagie stated that the bill could reach the National Assembly in the week of May 19, and the government aims to review it before summer and refine measures to avoid negative impacts on local businesses.

The bill defines fast fashion based on the number of new items sold within a specific period, allowing us to directly target the two Chinese online giants, SHEIN and Temu—this is my top priority, said Sylvie Valente-Le Hir, the bill's rapporteur in the Senate.

Professor Chen Jin from the University of International Business and Economics believes the growing trend of global trade protectionism and increasing barriers are key factors behind such measures.

Chen said that the Chinese products have gained a competitive edge in technology, quality, and pricing, while industries in other countries have weakened, prompting protectionist measures.

He emphasized that such a unilateral trade protection measure violates the WTO's principles of free and fair trade.

China encourages multilateral trade rules, does not rule out trade countermeasures

France is China's third-largest trading partner and third-largest source of actual investment within the EU, while China is France's top trading partner in Asia and seventh worldwide, according to the Ministry of Foreign Affairs of China.

At the same time, French brands like LVMH and Decathlon have long enjoyed a stable and fair business environment in China, achieving sustained growth.

LVMH's 2023 annual report shows that Asia is its largest consumer market. In 2023, LVMH generated €26.71 billion in revenue from the Asian market (excluding Japan), with China as the primary contributor, according to the China Council for the Promotion of International Trade.

Decathlon has also seen China become a key market. Decathlon CEO Barbara Martin Coppola stated that the country is not only one of Decathlon's top five global markets but also holds a unique and strategically vital position worldwide.

If France enforces sanctions on China's fashion industry, the latter would introduce corresponding measures to address trade imbalances, potentially affecting French exports to China and major brands like Decathlon, which rely heavily on the local market.

In recent years, China has taken decisive action against unilateralism and trade protectionism. In October 2024, shortly after the EU passed a draft sanction on Chinese electric vehicles, China imposed a provisional anti-dumping measure on brandy originating from the EU, requiring importers to pay a deposit exceeding 30 percent of sales value.

Chen said if France enforces such a protectionist measure and treats Chinese companies unfairly, China should protest.

Chinese enterprises should actively defend their rights, while the government can file complaints with the WTO to uphold multilateral trade rules and ensure fair competition, he explained.

Chen emphasized that China hopes France would respect multilateral trade principles and the WTO's authority to create a fair business environment. However, if a reasonable resolution is not found, trade countermeasures cannot be ruled out.