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Why Shein’s French fines are a warning to Chinese firms going global
Chinese firms going global can’t just enter foreign markets – they must also work to earn the trust required to stay there
On June 3, French authorities said they had imposed two new fines on Shein totalling more than €22 million (US$25.4 million), citing problems related to product traceability, environmental information, return rights and delivery times. Shein called the penalties disproportionate and said it would contest them.
For many Chinese companies, globalisation has moved through three stages. The first was the manufacturing phase, when Chinese firms won markets through cost, capacity and supply-chain discipline. The second was the platform phase, when e-commerce, apps, logistics and digital services allowed Chinese companies to reach consumers directly. The third phase, now emerging, is governance.
Shein is a useful example because the regulatory questions surrounding it are not limited to one defective product or advertising error. Authorities are examining the operating logic of a platform: how goods are sourced, sellers are supervised, environmental claims are substantiated, delivery commitments are communicated and consumers are protected.