Times are changing in Europe, and Italy is struggling to maintain the integrity and marketability of its high-end fashion brand while dealing with an influx of legal and illegal immigrants from China.

• The city of Prato in Tuscany has always been known for its quality textile production, but recently the industry has been taken over by Chinese companies known to use illegal labor and imported materials to feed a new low-end, “fast fashion” industry.
• Part of the immigrants’ success in exploiting the local economy involves clever maneuvering around Italian laws and regulations. Companies operating in a “gray market” are not technically breaking any laws – they comply with most regulations – but neither are thy upholding the spirit of the laws. For example, a textile producer may refuse to inquire into whether his subcontractors use illegal labor.
• The issue is sensitive in Italy, where immigration is a controversial and emotional subject. Some believe the situation in Prato is an intentional attempt at economic colonization by the Chinese government.

Facts & Figures

• Since 2001, half of Italian-owned textile businesses in Prato have been replaced by Chinese-owned textile businesses.
• Prato represents 27% of all Italian fabric imports from China.
• Approximately $1.5 million a day is directed from immigrants in Prato back to China, though it seems that much of that money is not being claimed on tax forms.
• Prato is home to about 25,000 mostly Chinese illegal immigrants.

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