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Shein founder breaks silence to praise China's manufacturing hub
Shein's reclusive founder, Xu Yangtian, made a rare public appearance on Tuesday, pledging $1.45 billion to transform Guangdong province into a high-tech fashion center and hailing local support as vital to the company's global rise.
Guangdong speech highlights deep roots
Xu, also known as Sky or Chris Xu, addressed the High-Quality Development Conference in Guangzhou, the heart of China's garment industry. He called Guangdong's "complete industrial ecosystem" and "world-class business environment" the foundation of Shein's success.
"The nourishment from Guangdong has been inseparable from Shein's growth," Xu told provincial officials and business leaders. His remarks were live-streamed and widely shared on Chinese social media.
$1.45bn investment to modernize supply chains
Shein first announced the 10 billion yuan ($1.45 billion) commitment in 2023 to upgrade the province's manufacturing networks. Xu said the funds would help create a "world-class fashion industry cluster" and generate over 600,000 jobs in the region.
Guangzhou's factories enable Shein to produce trend-driven, low-cost apparel within weeks, a key advantage in its fast-fashion model.
Global expansion amid regulatory challenges
Despite its Chinese origins, Shein has shifted its headquarters to Singapore and is pursuing stock market listings in New York and London. The company serves customers in more than 160 countries but faces growing scrutiny in Western markets.
In the U.S., former President Donald Trump's trade policies-including the elimination of a tax exemption for low-value parcels-directly impacted Shein's export-heavy business model.
Controversies and EU scrutiny
The European Union is investigating Shein for potential violations of digital regulations, including reports of childlike sex dolls sold on its platform. The company stated it removed the listings, banned the sellers, and is tightening platform rules.
In France, protests erupted over the opening of Shein's first physical store in Paris, delaying its launch until this week. Additional locations in French cities are set to open shortly.
Critics also highlight the fast-fashion industry's environmental impact and labor conditions in Shein's supply chain, though the company has not publicly addressed these concerns in recent statements.
Future plans rooted in China
Xu's speech underscored Shein's commitment to Guangdong, where he pledged to introduce more digital tools to enhance factory efficiency. "We will remain firmly rooted here," he said, framing the province as "fertile ground" for innovation.
