Italy's fashion industry faces scrutiny over Chinese‑linked labor exploitation

A German ARD documentary revealed that many garments sold with “Made in Italy” tags are actually produced in Chinese‑run factories in Prato, where hidden‑camera footage showed sweatshop conditions, criminal management and the use of cheap Chinese fabrics. The investigation highlighted that roughly a quarter of Prato’s 200,000 residents are Chinese, many of whom have bought local businesses to produce clothing for European brands.

In Milan, prosecutors have charged three executives of luxury shoe maker Tod’s with “caporalato” – illegal labor recruitment and exploitation of Chinese migrant workers. The workers were paid as little as €2.75 per hour, worked nights and holidays, and lived in substandard housing. The case, involving 53 exploited workers across six factories in Lombardy and the Marche region, underscores a broader pattern of fraud and abuse in Italy’s fashion supply chain.