Shein Shock: Elusive CEO Breaks Silence on China Roots
Shein founder Xu Yangtian unveils a $1.45B Guangdong investment, reinforcing the fast-fashion giant’s China roots amid global scrutiny.
The founder of China's fast-fashion giant Shein made a rare public appearance on Tuesday, reaffirming his ties with Beijing and his investment in the country's textile industry.
Speaking at a business conference in Guangdong, home to many of China's textile factories, Xu Yangtian revealed that Shein is investing 10 billion yuan (£1.08 billion; $1.45 billion) in the province to build a high-tech fashion hub.
Xu praised the Chinese government and said that the "nurturing" from Guangdong "cannot be separated" from Shein's success.
His speech comes after several years of Shein's distance from China, with the firm moving its headquarters to Singapore and pursuing potential stock market listings in New York and London.
Shein's boss, also known as Sky or Chris Xu, was speaking at the High-Quality Development Conference in Guangzhou, a global manufacturing powerhouse and home to most of China's clothing production.
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The city's factories are the backbone of Shein's fast-fashion operations, allowing it to transform the latest trends into low-priced clothing for sale online in a matter of weeks.
Shu credited the "world-class business environment" created by local authorities and the region's "entire industrial ecosystem" for the success of companies like his.
Shu said that for Shein, local support has helped the firm create more than 600,000 jobs in the region.
He described Guangdong as "fertile ground" for development, promising to bring more digital services to the area and make its factories more efficient.
Shein first announced plans to invest 10 billion yuan in 2023, which it is using to improve the province's supply chain.
Xu said Shein will "firmly root itself in Guangdong and build a world-class fashion industry cluster." His live-streamed talks with provincial officials and other company heads spread widely on Chinese social media and were also covered in local news.
The speech was a rare public appearance for Shein's founder, who has largely remained out of the public eye while the company has expanded to reach customers in more than 160 countries worldwide.
Shein has faced numerous challenges in recent years as tensions between Beijing and the West have increased scrutiny of Chinese firms.
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Exporters across Asia have been shaken by US President Donald Trump's trade policies, including the removal of a tax loophole for low-value parcels – a move that hit the core of Shein's export business.
Concerns have also been raised about the fast-fashion industry's environmental impact and labor conditions in its supply chain.
The European Union is investigating Shein for possible violations of digital law, including the sale of child-like sex dolls, which were disclosed on its website.
The company has said it has removed listings, banned sellers, and is working to tighten its platform's rules.
The sale of the dolls has sparked significant protests in Europe, particularly in Paris, where shoppers protested the opening of Shein's first concession in France.
After delaying the launch of stores in December, Shein is set to open more stores in French cities this week.
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