Shein Founder Reaffirms Ties to China in Rare Public Speech
The founder of the Chinese fast-fashion giant Shein made a rare public appearance on Tuesday, reaffirming his connection to Beijing and committing to significant investment in China's clothing industry.
Speaking at a business conference in Guangdong, a province known for its numerous garment factories, Xu Yangtian announced that Shein would invest over 10 billion yuan (£1.08bn; $1.45bn) in the region to establish a high-tech fashion hub.
"Nourishment" from Guangdong has been "inseparable" from Shein's success, Xu said, praising the Chinese government.
This speech comes after years during which Shein shifted its focus away from China, relocating its headquarters to Singapore and exploring potential stock market listings in New York and London.
Significance of Guangdong in Shein's Operations
Xu, also known as Sky or Chris Xu, delivered his remarks at the High-quality Development Conference in Guangzhou, a global manufacturing center that hosts the majority of China's clothing production.
The factories in Guangzhou are integral to Shein's fast-fashion business model, enabling the company to rapidly transform the latest trends into affordable clothing sold online within weeks.
Xu credited the "world-class business environment" created by local officials and the region's "complete industrial ecosystem" as key factors enabling companies like Shein to thrive.
Local support has allowed Shein to expand, supporting more than 600,000 jobs in the area, Xu stated.
Describing Guangdong as "fertile ground" for development, Xu pledged to introduce more digital services to the region and enhance factory efficiency.
"Shein will remain firmly rooted in Guangdong and build a world-class fashion industry cluster," Xu affirmed.
His live-streamed speech, addressed to provincial officials and other business leaders, has been widely shared on Chinese social media and covered by local news outlets.
Uncommon Public Appearance Amid Global Expansion
This event marked an unusual public appearance for Xu, who has largely remained out of the spotlight even as Shein expanded globally, reaching customers in over 160 countries.
Challenges Facing Shein Amid Geopolitical Tensions
Shein has encountered several challenges in recent years, as rising tensions between Beijing and Western countries have increased scrutiny of Chinese firms.
Exporters throughout Asia have been affected by trade policies under former US President Donald Trump, including the removal of a tax loophole for low-value parcels—a policy that directly impacted Shein's export business.
Concerns Over Environmental and Labour Practices
There have also been concerns regarding the environmental impact of the fast-fashion industry and labour conditions within Shein's supply chain.
EU Investigation and Controversies
Shein is currently under investigation by the European Union for potential violations of digital law, including the sale of childlike sex dolls that were reported on its website.
The company stated that it has removed the listings, banned the sellers involved, and is working to strengthen its platform's regulations.
The sale of these dolls sparked backlash in Europe, particularly in Paris, where shoppers protested the opening of Shein's first concession in France.
Despite the controversy, Shein plans to open additional stores in French cities this week after delays postponed the launch of the initial stores in December.
