On Thursday, China claimed that France’s new fast-fashion law, targeting major Asian e-commerce platforms including Shein and Temu was “clearly discriminatory.” Responding to these accusations, a source from a department linked to France’s Ministry of Foreign Minister Affairs told Euronews that these claims were false.
A source from the French Foreign Trade and Attractiveness office said that the new law was “not discriminatory” and that it was introduced to “protect the environment and consumers.”
“It is in everyone’s interest, including China’s, to have a peaceful relationship with France, with the European Union, and a civil trade relationship”, the source said.
Speaking at a press conference on Thursday, Chinese commerce ministry spokesperson Huang Ling called for the suspension of the new law, which came into force on Tuesday, after it was voted in July.
The law imposes fees on certain items — which will eventually reach almost 20 euros per garment — as part of a push to curb the industry’s environmental and local economic impacts.
“China urges France to immediately halt the implementation of the anti-ultra-fast fashion law,” said Huang, adding that China stands in “firm opposition to France’s insistence on pushing forward this trade-restrictive measure, which is clearly discriminatory”.
“Should France persist in this course of action, China will take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises,” she stated, while warning that “France will bear full responsibility for all consequences arising from this.”
“No discrimination”
According to the source at France’s Foreign Trade and Attractiveness Office, while there is “no discrimination”, China is within its rights to raise issues around the law with the WTO.
“The fact that China feels targeted is indeed something we have heard. We are of course ready to talk to them to understand to what extent they feel targeted […] If China has technical issues with the law, it is perfectly entitled to submit them to the WTO.”
“Our Parliament is sovereign and has had its say. It has passed this law and we will fully respect its decision. This kind of threat, this challenge to a state’s sovereign position, is coercion, economic retaliation. But for now, it remains a threat.”
The European Commission has expressed reservations about whether France’s “anti-fast-fashion” law is compatible with EU law, particularly relating to its advertising ban, which prohibits promotional campaigns and influencer marketing for fast-fashion brands.
However, according to the source, the law has undergone revisions and is robust. “We have taken the time to respond to the European Commission’s concerns, to questions about compatibility with various directives. Questions remain, but we are confident”,
“From our point of view, there are no outstanding issues”.
For now, China has not said what retaliatory measures it could take, but Beijing has already targeted French interests in the past, imposing anti-dumping measures on European brandy in 2024, after the European Union decided to impose duties on Chinese electric vehicles.
French cognac producers were among the business actors who found themselves at the heart of a customs stand-off between the European Union and China.
What does the law say?
Under France’s new legislation, what counts as “ultra-fast fashion” is determined on the basis of two sets of criteria: the volume of clothing placed on the market and the cost of repairing garments relative to their purchase price.
The per-item fee is set to vary on a set scale, according to how each product scores on both these standards.
Shein, known for its ultra-low prices and rapidly produced clothes, made a tepid Hong Kong Stock Exchange debut on Tuesday, after previous plans for initial public offerings in New York and London were derailed.
The online retailer moved its headquarters to Singapore between 2021 and 2022, which analysts say was intended to avoid increasing global scrutiny of Chinese firms.