China Urges France to Drop 'Anti-Fast Fashion Law' Over Fair Competition Concerns
Mofcom held talks with French companies operating in China regarding EU subsidies and the contested French legislation.
Quick Look
China's Ministry of Commerce held talks with French firms in China, demanding France stop using its anti-fast fashion law to undermine Chinese enterprises and distort fair competition.
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Why It Matters
China's Ministry of Commerce held talks with French companies operating in China regarding EU subsidies and France's anti-fast fashion law.
China’s Ministry of Commerce (Mofcom) said on Thursday it had held talks with French companies operating in China and reiterated calls for France to stop using its “anti-fast fashion law” to undermine the rights and interests of Chinese enterprises.
According to ministry spokesperson Huang Ling, public reports suggested some French companies had received subsidies from the European Union and its member states, and that this support might have been “partly passed through to their Chinese-based entities”.
The discussions with French companies were aimed at “seeking information and requesting explanations” to “assess the impact”, Huang noted.
The law uses “plainly targeted standards and parameters to discriminate against and suppress Chinese cross-border e-commerce operators. The rules would severely distort fair competition”, Huang said.
Under the French legislation, clothing qualifies as “ultra-fast fashion” based on two criteria: the volume of clothing placed on the market and garment repair costs relative to the retail price.
Open Questions
- Which French companies received EU subsidies?
- How will France respond to Mofcom's demands?
