On Thursday, China fired off accusations, claiming that France’s new anti-fast fashion law was “clearly discriminatory.” The Ministry of Foreign Affairs in China expressed its discontent to Euronews, stating that these allegations were baseless. However, a source from the French Foreign Trade and Attractiveness office was quick to clarify that the law is “not discriminatory” and was rolled out to “protect the environment and consumers.” They emphasized that it’s in everyone’s interest, even that of China.
During a press conference, Chinese commerce ministry spokesperson Huang Ling urged for the suspension of the new law, which took effect on Tuesday after being passed in July. This law slaps fees on certain clothing items, which could balloon to nearly 20 euros per garment, aiming to tackle the industry’s adverse environmental impacts and bolster local economies. Huang reiterated that China stands in “firm opposition to France,” and hinted at possible repercussions, while also warning that they might consider economic retaliation.
According to the French source, the feeling of being targeted by China is something they’ve indeed heard, and they are prepared to engage in discussions to unpack these concerns. If China has valid technical issues with the law, they’re well within their rights to address them with the World Trade Organization (WTO), the source added. Yet, they also pointed out that any aggressive stance taken by China could be viewed as coercion or economic retaliation.
As of now, China hasn’t revealed what specific retaliatory actions it might take, but we can’t forget that Beijing has previously taken aim at French interests, imposing anti-dumping measures on European brandy in 2024 after the EU slapped duties on Chinese electric vehicles. French cognac producers have been caught in the middle of these trade tensions between Europe and China.
Now, diving into the nitty-gritty of France’s legislation, what qualifies as “ultra-fast fashion” hinges on two key criteria: the volume of clothing hitting the market and the repair costs relative to their purchase prices. Fees for each item will be scaled according to how well they score on these benchmarks.
Interestingly, Shein, the notorious giant known for its rock-bottom prices and lightning-fast production, recently had a lukewarm debut on the Hong Kong Stock Exchange. Their plans for initial public offerings in New York and London fell through, and in a strategic move, they relocated their headquarters to Singapore between 2021 and 2022. Analysts suggest this shift was an effort to dodge the growing global scrutiny aimed at Chinese firms.
So, what’s next in this saga? Will China indeed retaliate, or will dialogue pave the way for a smoother relationship? Only time will tell…
Kaynak: Orijinal Haber