Shein founder Xu Yangtian made a rare public appearance in China and said the company will invest 10 billion yuan in Guangdong to build a high-tech fashion hub, while also reaffirming ties to Beijing after years of shifting the company’s focus overseas. Speaking on Tuesday at a business conference in Guangzhou, Xu praised local authorities and said support from the province has been central to Shein’s growth, even as the company faces regulatory pressure and trade headwinds abroad.
Speech In Guangdong And Investment Plans
Xu, also known as Sky or Chris Xu, addressed the High-quality Development Conference in Guangzhou, a manufacturing center that hosts much of China’s clothing production. He said Shein is investing 10 billion yuan, equal to about £1.08 billion or $1.45 billion, in the province to create a high-tech fashion hub. Xu said “nourishment” from Guangdong has been inseparable from Shein’s success and praised what he called the world-class business environment and the region’s complete industrial ecosystem. He said local support has helped the company grow to support more than 600,000 jobs in the area and described Guangdong as fertile ground for development. He added that Shein will bring more digital services to the region and work to make factories more efficient. The company first announced the 10 billion yuan plan in 2023 and said the money is being used to improve local supply chains. Xu said Shein will remain rooted in Guangdong and build a fashion industry cluster in the province.
Context Of Shein’s Global Shift
The appearance follows years in which Shein shifted focus away from China, including moving its headquarters to Singapore and pursuing a potential stock market listing in New York and London. The company’s model relies on factories in and around Guangzhou to turn trends into low-cost clothing that can be sold online within weeks. Xu’s remarks were live-streamed to provincial officials and business leaders and were widely shared on Chinese social media and covered by local news. The speech was notable because Xu has largely stayed out of the public eye even as Shein expanded to customers in more than 160 countries.
Trade And Regulatory Pressure
Shein has faced challenges as tensions between Beijing and Western governments increased scrutiny of Chinese companies. Exporters across Asia have been affected by US President Donald Trump’s trade policies, including the removal of a tax loophole for low-value parcels, a change that affects Shein’s export model. The company has also faced questions about environmental impact and labor conditions in its supply chain.
European Investigation And Store Plans
Shein is under investigation by the European Union over possible breaches of digital law, including the sale of childlike sex dolls that had appeared on its website. The company said it removed the listings, banned the sellers, and is tightening platform rules. The products drew protests in Europe, including in Paris, where shoppers demonstrated against the opening of Shein’s first concession in France. Shein is set to open additional shops in French cities this week after the initial launch in December was delayed.
Featured image credits: Flickr
For more stories like it, click the +Follow button at the top of this page to follow us.