Summary of Key Points
France has recently introduced a law aimed at curbing “ultra-fast fashion,” which ostensibly seeks to promote environmental protection and sustainable development. However, the main targets of the legislation are Chinese cross-border e-commerce platforms such as Shein and AliExpress. The law imposes penalties and advertising restrictions on these platforms, while exempting European fast-fashion brands like Zara and H&M. China views this as a discriminatory trade barrier and has expressed serious concerns, demanding that France rectify the situation. There is also controversy within France and the European Union regarding the bill (for example, some criticize the exemption of local brands, and the EU questions the legality of the advertising provisions).
What Does the Law Cover?
The law establishes two key criteria for defining “ultra-fast fashion”: excessive quantities of clothing sold on the market and low repair costs relative to purchase prices (indicating poor quality, making repairs more expensive than buying new garments). Specific measures include:
1. Penalties: Starting in September 2026, a fine of up to €12 per non-compliant garment will be imposed, rising to €20 by 2030 (for example, a pair of jeans could cost €9 in 2026 and €17 in 2030), with the maximum penalty being 50% of the pre-tax price of the garment.
2. Advertising Bans: Advertising for “ultra-fast fashion” products is prohibited, including by influencers (regardless of whether they are paid to promote the brands). Violators may face fines of up to €100,000.
3. Corporate Responsibility: Foreign companies must appoint a representative in France to handle product recycling and reuse. The law applies to common clothing items such as underwear, socks, T-shirts, jeans, and jackets.
Why Is It Targeting Chinese Platforms?
Although the law is intended to regulate “ultra-fast fashion,” it exempts European brands like Zara, H&M, and Primark. French media have explicitly reported that these brands are exempted from the restrictions, which has drawn criticism from left-wing lawmakers who argue that Zara and H&M are not examples of sustainable practices. In contrast, Chinese platforms such as Shein and AliExpress are subject to the regulations, leading China to claim that this constitutes discriminatory trade barriers that violate WTO principles of non-discrimination.
China’s Reaction
The Chinese Ministry of Commerce has stated that the law uses environmental protection as a pretext for exclusivity, distorting fair competition. It demands that France immediately rectify the situation and provide a fair business environment for Chinese companies. If Chinese businesses suffer losses, China will take necessary countermeasures. China also points out that the law will harm French consumers, as products from Chinese platforms are often cheaper, potentially leading to a decrease in affordable clothing options.
Controversy Surrounding the Law
The law has faced criticism both in France and the EU:
- Left-wing lawmakers abstained from voting, and Green Party members criticized the bill for being significantly weakened.
- Environmental organizations have criticized it for failing to effectively target European brands.
The European Commission has raised doubts about the legality of the advertising ban. If the EU opposes the ban, the law may not be implemented.
What Should Chinese Companies Do?
Zhao Yongsheng from the University of International Business and Economics advises that Chinese companies should pay attention to new EU environmental regulations in the textile industry, such as the requirement to reuse or donate unsold clothing. They should adjust their product strategies (e.g., improving garment quality, reducing mass production, and using more environmentally friendly materials) and prepare for potential penalties and advertising restrictions by appointing local representatives in France to handle compliance issues.
In summary, this law is a French attempt to protect its domestic industries, but Chinese companies need to adapt to EU environmental standards if they want to remain competitive in the European market.