The investigation

Shein and Temu's low-cost fashion burns more and more oil

China's synthetic fibre production has exploded, and 90% of the increase in demand for crude oil is related to chemicals, not cars

by Biagio Simonetta

3' min read

3' min read

Just before Christmas, a Parisian influencer, known for promoting 'body positivity', uploaded a video on Instagram in which she showed clothes by Shein, offering 15% off to her followers. This is now common practice in the social world, as thousands of influencers on TikTok and Instagram work with Shein to post videos in which they try on piles of clothes, invite followers to visit Shein's pop-ups and promote their sales events.

Chemicals in clothes

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It sounds like the business fair, but none of these influencers tell about the oil these companies use to produce their products, such as the 3 euro T-shirts. No one tells that oil consumption today does not only affect car giants like General Motors and Toyota, but also fast fashion giants like Shein and Temu, because it is fuelled by the chemicals used in the production of clothes.

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The clothing offered by the fast-fashion giants is dominated by polyester, a material derived from petroleum, which is responsible for the unintentional release of microplastics into the environment.

Fashion burns oil

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It must be said that already in 2020, the European Parliament estimated that the fashion industry was responsible for 10% of global carbon dioxide emissions, more than international flights and shipping combined. And the Chinese fast fashion boom, led by high-growth companies like Shein and Temu, is exacerbating the situation.

It is no coincidence that on 14 March, the lower house of the French parliament passed a law targeting precisely the business model of these companies, with a measure to compensate the environmental impact of the fast fashion industry, by banning advertising by certain companies and penalising them with a taxation that foresees increasing annual increases of up to 10 euros per garment by 2030.

Judging by the numbers of Shein and Temu, however, it will not be easy to contain them. Shein is the most downloaded app in Europe, in the clothing sector. At the origins of this colossus, which is entertaining the idea of listing in New York, is the Nanjing company Dianwei Information Technology, founded in Nanjing in 2008. The initial idea was to deal mainly with wedding dresses, but in 2012 one of the founders, Chris Xu, decided to focus on a new brand of women's clothing by purchasing the domain Sheinside.com, later renamed Shein in 2015. The headquarters are now located in southern China, in the metropolis of Guangzhou, where most of the supplier factories are concentrated.

Today, Shein's profits have risen to USD 2 billion and in 2023 more than USD 45 billion worth of goods were sold through its site, according to the Financial Times.

Refineries change course

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Companies such as Shein and Temu are among the reasons why several private Chinese refineries, such as Rongsheng Petrochemical and Hengli Petrochemical, have spent billions to build new plants specialising in chemicals such as ethylene. According to the International Energy Agency, about 90% of the increase in China's oil demand between 2021 and 2024 will come from chemical feedstocks. While the consumption of petrol and even jet fuel barely increases.

According to Bloomberg, China's production of synthetic fibres increased by 21 million tonnes between 2018 and 2023, enough to spin more than 100 billion T-shirts per year. Many of these cost less than EUR 5 on fast fashion sites. The disproportionate consumption of oil, as well as carbon dioxide emissions, are a direct consequence.

Dumpster clothes

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All this while in the most remote places in the world, such as the Atacama Desert (in northern Chile), or along the beaches of Ghana, open-air dumps grow where unsold T-shirts, jeans and clothing are piled up on hundreds of acres.

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