(Yicai) Sept. 4 -- China has called on France to repeal its new ultra-fast fashion law that targets online e-commerce platforms such as Shein and Temu, with Commerce Ministry spokesperson Huang Ling calling the legislation “clearly discriminatory” and warning of potential countermeasures if it remains in force.

France should immediately stop implementing the law that came into force on Sept. 1 and resolve differences in the sustainable textile trade sector through equal dialogue, so as to create a fair and non-discriminatory market environment for Chinese-invested enterprises, Huang said at a regular press conference yesterday.

The ultra-fast fashion legislation is suspected of violating the World Trade Organization's non-discrimination principle, as it adopts a double standard under the pretext of setting environmental protection and sustainability standards, Huang said.

Should France persist with the law, China will take “necessary measures” to safeguard the legitimate rights and interests of Chinese-invested companies, and France will “bear full responsibility for all consequences arising from this,” Huang added.

The law incorporates a legal definition of ultra-fast fashion, or mode ultra-express in French, into France's Environmental Code, covering business models that flood the market with large volumes of new clothing, footwear, or household textile products while offering little incentive to reuse or repair them. Both criteria must be met, with specific thresholds determined by regulators.

Financial penalties came into effect under the law, ranging from 25 euro cents to EUR12 (29 US cents to USD14) per product and capped at 50 percent of the pre-tax sales price. From 2030, that will increase to between EUR2 and EUR20 (USD2.30 and USD23) per product.

The legislation also increases the contributions sellers and importers must pay to Refashion, France’s textile recycling and producer-responsibility organization, based on their product range, the frequency of new offerings, and incentives for repair, and requires foreign sellers to appoint a representative in France to handle the new obligations.

In addition, the legislation bans the advertising of ultra-fast fashion products, and prohibits influencers from promoting them. Violations are punishable by an administrative fine of as much as EUR100,000 (USD116,265). These requirements do not apply to companies established in a European Union member state, Norway, Liechtenstein, and Iceland.

Critics in France have denounced the law for sparing European and domestic brands, such as Zara and H&M, and the European Commission has questioned whether the advertising provisions comply with EU law.

In late July, when asked to comment on French officials explicitly identifying e-commerce sites Temu, Shein, and AliExpress as the main targets of the new legislation, China’s commerce ministry urged France to abide by WTO rules and immediately correct the discriminatory practices against Chinese-invested firms.

The new law seriously distorts fair competition through legislation and reflects the recent policy direction of the EU and its member states, Zhao Yongsheng, director of the France Economic Studies Center at University of International Business and Economics, told Yicai in July. Chinese textile exporters to Europe should pay close attention to it, he noted.

Editor: Futura Costaglione