In a rare public address, Shein founder Xu Yangtian (also known as Sky Xu) has committed substantial investment to China’s fashion industry while reaffirming the company’s deep ties to its manufacturing homeland. Speaking at the High-quality Development Conference in Guangzhou, the reclusive billionaire announced plans to invest over 10 billion yuan ($1.45 billion) to establish a high-tech fashion hub in Guangdong province.
Xu emphasized the symbiotic relationship between Shein’s global success and Guangdong’s industrial ecosystem, praising the region’s ‘world-class business environment’ and ‘complete industrial ecosystem.’ His remarks, delivered to provincial officials and business leaders, marked a significant departure from his typically private profile and were widely circulated across Chinese social media platforms.
The investment pledge comes despite Shein’s strategic distancing from China in recent years, including its headquarters relocation to Singapore and exploration of stock market listings in New York and London. Xu acknowledged Guangdong as ‘fertile ground’ for development, noting that local support has already enabled Shein to generate over 600,000 jobs in the region.
The announcement occurs against a backdrop of increasing challenges for Chinese global retailers. Shein currently faces EU investigations regarding potential digital law violations, including the controversial sale of childlike sex dolls through its platform. The company has responded by removing the listings and banning responsible sellers while strengthening platform regulations.
Additional pressures include heightened scrutiny from Western markets, particularly regarding environmental sustainability concerns and labor conditions within fast-fashion supply chains. The company’s expansion plans continue nonetheless, with new retail locations scheduled to open in French cities following delayed launches in December.