Anti-fast-fashion law: Beijing threatens France with retaliatory “measures”

On Thursday, China threatened to hit France with countermeasures if it won’t “immediately” repeal the penalty charges that came into effect on Tuesday on ultra-fast fashion products, like those sold by Shein, a group founded in China.

“If France continues along this route, China will take the necessary measures to protect the rights and legitimate interests of Chinese businesses,” said Ministry of Commerce spokesperson Huang Ling. “Responsibility for all the consequences arising in this case will fall squarely on France,” she added, speaking at a scheduled press meeting.

The regulation that came into effect on Tuesday in France imposes a penalty of up to €19.50 per item in 2030, with a ceiling set at 50% of the product price net of tax. It is part of the anti-fast-fashion law approved by the French parliament at the end of June, which includes further measures coming into effect at a later date.

France’s justification for the new law is the impact ultra-fast-fashion has on the environment and the country’s economy.

“China has put pressure on France to immediately cease implementing the law against ultra-fast fashion,” said Ling.

She railed against a measure described as “damaging to trade and manifestly discriminatory,” and had already threatened reprisals back in July.

Ling stated that France ignored the objections put forward by China, “causing significant operational losses to the Chinese companies involved.”

EU textile industry demands more measures

China’s statements came in the wake of the call issued on Tuesday September 1 by Europe’s textile industry associations to increase duties on small parcels entering Europe from non-EU countries. The associations asked that the extra duty, which is set to be added in the autumn to the €3 tax introduced on July 1, should not be €2 as announced, but €10.

Industry associations also believe that the fact the taxes and duties are applied only once per product category is not enough: for example, an imported parcel containing 10 T-shirts is only taxed as one.

“It’s a mistake,” said Mario Jorge Machado, president of Euratex, the confederation of European textile industry associations, speaking to FashionNetwork.com. I fully understand that, technically, applying anything beyond this €3 charge could create far more complications, and that it is better to have something than nothing. Nevertheless, I believe we must rectify this point,” he added.

(with AFP)