Shein Invests 10 Billion Yuan in Guangdong to Boost Fashion Hub Amid Controversies
February 25, 2026
In a live address at the Guangdong High-Quality Development Conference in Guangzhou, the founder laid out Guangdong as the powerhouse behind Shein’s expansion, emphasizing the region’s industrial ecosystem as foundational to the company’s growth.
Xu’s public appearance marks a shift in Shein’s narrative to embrace Chinese roots, contrasting with the earlier global-brand portrayal centered in Singapore.
Europe remains a focus with openings in France, including a Paris concession that sparked protests, with plans to open additional stores in other French cities.
Shein announced a 10 billion yuan investment in Guangdong to build a high-tech fashion hub, a project announced in 2023, aimed at strengthening supply chains and creating a world-class fashion industry cluster in the province.
The piece notes ongoing controversy surrounding Shein’s operations, including past criticisms and protests related to its market strategies and product concerns.
Xu highlighted that Guangdong’s factories underpin Shein, supporting more than 600,000 local jobs and enabling rapid trend-to-product cycles through its integrated supply chain and manufacturing network.
Shein’s growth model centers on on-demand, small-batch production (about 100–200 units) with a highly automated process and real-time market feedback guiding manufacturing and replenishment.
The company maintains long-term relationships with over 5,000 contract manufacturers and uses proprietary supply chain technology to ensure visibility into capacity, inventory, and demand, aiming for a roughly 10-day design-to-production cycle.
The European Union is investigating Shein for potential digital-law breaches, including past listings of childlike sex dolls; Shein says it removed the listings, banned sellers, and tightened platform rules.
Shein shifted its headquarters to Singapore years ago and has pursued stock listings in New York and London, signaling a move away from China despite renewed emphasis on its Chinese roots.
This investment and Xu’s remarks follow years of relocation of its base and ongoing efforts to expand to more than 160 countries while pursuing international listings.
Shein was valued at about 365 billion yuan (roughly USD 53 billion) and ranked among the world’s top unicorns in 2025.
Summary based on 5 sources
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Sources

BBC News • Feb 25, 2026
Shein's elusive boss hails Chinese roots in rare public appearance
BBC News • Feb 25, 2026
Shein's elusive boss hails Chinese roots in rare public appearance
AOL • Feb 25, 2026
Shein's elusive boss hails Chinese roots in rare public appearance