site.btaClothes Purchased through Chinese Online Platforms Can Be Environmental, Health Hazard, Warn Bulgarian Merchants

The rise of trading through platforms such as SHEIN and Temu leads to health hazards, increased environmental damage and obstacles to sustainable business models, which the European Commission encourages, said the Bulgarian Association of Circular Textiles (BACT) in a position sent to BTA on Friday.

The Chinese online platforms subsidize orders below cost and rely on aggressive advertising. In this way, they take away the market from local traders, including second-hand ones. While consumers benefit from low prices in the short term, this eliminates competition that cares about good trading conditions, the position reads. The European Commission defines SHEIN and Temu as "very large platforms", which calls for stricter control over their activities and hinders the development of circular business models, experts point out.

Chinese online shopping sites benefit from the duty-free minimum of USD 150 for third-party goods. In this way, they flood the European market with a huge amount of products, mainly textiles. However, they do not pass sanitary control, which creates real health hazards, said BACT.

The association noted that investigations have revealed high levels of dangerous chemicals such as lead, perfluoroalkyl (PFA) and phthalates in SHEIN products, exceeding EU regulatory limits. For example, tests in South Korea found that children's items contained phthalates 428 times above the permitted limits. The presence of toxic chemicals in materials is associated with health risks, both for consumers and workers in production chains.

Another negative aspect is related to the manufacturing and working conditions under which the Chinese goods sold are produced. Indictments from 2022 allege that SHEIN sourced cotton from Xinjiang in violation of the Uyghur Forced Labour Prevention Act. There are other reports of exploitative labour practices and poor working conditions.

"The negative impact on the environment is undeniable. As we know, the fashion industry contributes to 10% of global carbon emissions. The goods sold through Chinese platforms are mostly made of plastics and non-recyclable materials. The fast production cycle and low reuse rate contribute significantly to increasing textile waste," the position reads.

European Commission data show that up to 65% of shipments to the EU are undervalued in order to avoid customs duty, and the commission has the right to intervene in cases where foreign subsidies lead to disruption of the European Union's internal market.

Chinese online platforms often infringe intellectual property, with leading brands around the world reporting that many of SHEIN and Temu's styles and designs have been copied from other brands. The chosen approach of work is by fast delivery. This leads to demand for air freight, which increases air freight costs and causes capacity shortages.

Through their aggressive marketing approach and unfair practices, these new third-party players pose a serious challenge to businesses within the EU, which find it difficult to compete with them. Their commercial practices raise questions about their compliance with union law, particularly in the areas of consumer protection, product safety, data protection and tax law, the position said.

"As a responsible branch organization, we call on the Bulgarian institutions to take measures to prevent negative impacts on businesses and citizens. Our members reported a 15 drop in sales at their sites in Bulgaria over the last 6 months, largely caused by competition from Chinese online merchants and their practices. Companies from our sector with many years of experience were forced to close 10% of their second-hand clothes trading sites in the same period," BACT reported.