Customs delays hit French cosmetics

Up to 15 percent of products from certain French cosmetic manufacturers are reportedly blocked in Chinese customs, according to Marc-Antoine Jamet, president of Cosmetic Valley. The issue is linked to French measures against ultra-fast fashion and small packages, which Beijing had warned in July would lead to "countermeasures" if the interests of its companies were harmed.

Chinese market vital for French cosmetics

China represents the second-largest market for French cosmetics, with 1.8 billion euros in exports last year, out of a total of 22.4 billion euros for the industry. The Chinese Ministry of Commerce had accused France in July of imposing "discriminatory" restrictions on Chinese cross-border e-commerce platforms through its law against ultra-fast fashion.

France defends its environmental stance

Paris rejected these accusations and defended the measure as environmental and intended to regulate ultra-fast fashion practices. However, the problem is no longer purely theoretical, as Chinese platforms are targeted by French measures and French companies are encountering difficulties in China in turn.

Trade tensions widen beyond fashion

The controversy around the French law has raised the risk of trade tensions extending beyond the debate on fast fashion. A measure designed to increase the price of clothes sold by certain Chinese platforms could have its first visible commercial consequence in complicating access to the Chinese market for products made by French companies.

French cosmetics face multiple pressures

French interests in China far exceed the textile sector, with perfumes and cosmetics holding considerable positions in the market. French cosmetics exports to China alone represented 1.8 billion euros last year, a significant share of the 22.4 billion euros in sector exports. The industry is also facing pressure from tariffs imposed by the United States, making French companies export-oriented and exposed to both American and Chinese trade tensions.

Customs delays signal growing risk

For now, it is customs delays, not an import ban, but the figure cited by Cosmetic Valley—about 15 percent of products from some members blocked—gives a first measure of the risk. Especially, it comes a few months after Beijing publicly warned Paris that it would take countermeasures if the French law harmed Chinese companies. The French battle against ultra-fast fashion could thus begin to be paid far from the clothing aisles.