On June 3, French authorities said they had imposed two new fines on Shein totalling more than €22 million (US$25.4 million), citing problems related to product traceability, environmental information, return rights and delivery times. Shein called the penalties disproportionate and said it would contest them.

However, the broader issue is not whether one enforcement decision was too severe. With these latest penalties, fines imposed by French authorities on the Chinese-founded company have exceeded €210 million. That number points to a deeper question: can a business model built on speed, low prices and cross-border scale meet the governance expectations of mature overseas markets?

For many Chinese companies, globalisation has moved through three stages. The first was the manufacturing phase, when Chinese firms won markets through cost, capacity and supply-chain discipline. The second was the platform phase, when e-commerce, apps, logistics and digital services allowed Chinese companies to reach consumers directly. The third phase, now emerging, is governance.

The decisive question is no longer simply whether Chinese firms can enter foreign markets. It is whether they can earn the trust required to stay there.

Shein is a useful example because the regulatory questions surrounding it are not limited to one defective product or advertising error. Authorities are examining the operating logic of a platform: how goods are sourced, sellers are supervised, environmental claims are substantiated, delivery commitments are communicated and consumers are protected.

The same pattern can be seen elsewhere. TikTok has faced repeated scrutiny in Europe over data protection. Temu and AliExpress have been challenged over product safety and illegal goods. ZTE’s earlier experience in the United States showed how export controls and sanctions compliance can become existential risks.