China has demanded that France repeal the law targeting Shein and Temu - Logos Press

“China is extremely dissatisfied with France’s decision to push through a discriminatory trade restriction,” said Huang Lin, a spokesperson for the Chinese Ministry of Commerce, today, 3 September. According to her, Beijing is calling on Paris to “immediately halt the implementation” of the law, Euronews reports. The Chinese authorities believe that France is using environmental and sustainability standards as a pretext for imposing trade restrictions. In Beijing’s view, the new rules may violate the principle of non-discrimination enshrined in World Trade Organisation rules. “If France insists on applying it, China will take the necessary measures to protect the legitimate rights and interests of Chinese companies,” said Huang Lin. She added that France “will bear all the consequences arising from this”. It should be noted that the French law came into force on 1 September. It imposes an additional levy on manufacturers of clothing, footwear and home textiles operating under the ‘ultra-fast fashion’ model. In 2026, the rate will range from 0.25 to 12 euros per item, and from 2030 the maximum levy will rise to 20 euros. Major online platforms, including the Chinese firms Shein, Temu and AliExpress, fall within the scope of the law. The amount of the levy will depend on two factors: the number of new items a company brings to market, and whether it encourages customers to repair items rather than buy new ones. Formally, the levy is paid by manufacturers; however, companies may pass on the additional costs to customers by raising prices. Paris hopes this will reduce the environmental damage caused by the fashion industry and protect the French market from cheap imports. For Shein, the new rules come against a backdrop of growing international scrutiny of the company. On Tuesday, the retailer made its debut on the Hong Kong Stock Exchange after its plans for an initial public offering in New York and London ran into obstacles. In 2022, Shein moved its headquarters from China to Singapore. The decision was seen as an attempt to distance the company from growing international scrutiny of Chinese businesses. Follow our updates Add Logos Press as a preferred source on Google Subscribe to our Telegram channel Have information for the newsroom? Share it with Logos-Press International trade Green economy Legislation World markets Regulation EU