Trial of Chinese Crime Gangs in Italian Fashion Stalls amid Sabotage Fears

Italian Guardia di Finanza (Tax Police) carry out a search at a textile firm during an investigation, in the Tuscan city of Prato, Italy, in this handout photo obtained by Reuters. Guardia di Finanza Press Office/Handout via REUTERS
Italian Guardia di Finanza (Tax Police) carry out a search at a textile firm during an investigation, in the Tuscan city of Prato, Italy, in this handout photo obtained by Reuters. Guardia di Finanza Press Office/Handout via REUTERS
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Trial of Chinese Crime Gangs in Italian Fashion Stalls amid Sabotage Fears

Italian Guardia di Finanza (Tax Police) carry out a search at a textile firm during an investigation, in the Tuscan city of Prato, Italy, in this handout photo obtained by Reuters. Guardia di Finanza Press Office/Handout via REUTERS
Italian Guardia di Finanza (Tax Police) carry out a search at a textile firm during an investigation, in the Tuscan city of Prato, Italy, in this handout photo obtained by Reuters. Guardia di Finanza Press Office/Handout via REUTERS

A landmark trial in Italy of Chinese crime gangs has suffered so many mishaps - from the disappearance of documents to the resignation of interpreters - that a senior prosecutor suspects it's being sabotaged to protect the criminals' grip on Europe's fashion industry.

The case, launched after two Chinese men were hacked to death with machetes in 2010, is aimed at dismantling an illicit network accused of controlling the logistics of the continent's multi-billion-euro garments sector from the city of Prato in Tuscany.

Instead, it has become a cautionary tale about the obstacles Italy's justice system faces when confronting international organized crime without the tools it has used effectively to fight home-grown mafia groups, prosecutors say.

Reuters spoke to two of Italy's most senior anti-mafia investigators, and more than half a dozen textile workers, union representatives and defense lawyers, to gain a rare glimpse into the challenges of tackling alleged Chinese organized crime.

"The suspicion is that there is interference from the Chinese community and Chinese authorities in this matter," said Luca Tescaroli, a veteran of Italy's war against the mafia who is now Prato's chief prosecutor and leading the charge against Chinese crime gangs.

The Chinese embassy in Rome did not reply to emails requesting comment on Tescaroli's remarks. China's foreign, public security and justice ministries did not immediately reply to Reuters' requests for comment for this story.

When the latest court interpreter failed to show up to a hearing at the end of September, a quick check revealed she had returned to China and her transcripts were "incomprehensible and unusable", Tescaroli said.

The translator was the second to walk off the job and no other Chinese interpreter in Tuscany has agreed to take over. Tescaroli has opened an investigation into the possibility that someone is looking to sink the trial.

The violence prosecutors hoped to curb has only intensified as the trial flounders, with the battle for control of coat hanger production and fast-fashion freight spawning a string of bomb and arson attacks in Italy, France and Spain.

There have been at least 16 attacks, including cases of the destruction of property, since April 2024, according to a Reuters tally of official reports.

The Prato prosecutor and his colleagues are pressing the judges in the so-called China Truck trial to define the Chinese gangs legally as mafia groups – a designation that would unlock sweeping powers, asset seizures and stiffer sentence.

However, in Italy that label is difficult to secure, even more so if the organizations are rooted abroad, making them harder to penetrate than home-grown crime groups such as Sicily's Cosa Nostra.

Wedged in the hills northwest of Florence, Prato is billed as Europe's largest textile manufacturing hub, hosting more than 7,000 textile and garment companies that register some 2.3 billion euros ($2.68 billion) in official annual exports. Over 4,400 of firms are Chinese owned, local authorities say.

Almost a quarter of its residents are foreigners, the largest ratio in Italy, but the percentage is likely much higher as many newcomers are illegal immigrants without work permits.

Prato's streets are lined with Chinese-owned workshops, warehouses, and businesses that have transformed the city into a global fast-fashion production center, and a flashpoint for violence linked to criminal networks.

The China Truck investigation closed in 2018 with prosecutors alleging that the 58 suspects had formed "a criminal association equipped with very significant financial means ... with support and resources abroad".

Seven years on, not a single defendant or witness has been called to testify.

Meanwhile, the alleged mastermind Zhang Naizhong, described by investigators as a "boss of bosses", slipped back to China in 2018 after he was released from pre-trail custody and prosecutors doubt he will ever return to Italy.

His Italian lawyer Melissa Stefanacci declined to comment on any aspect of the case. Zhang and the other suspects have pleaded not guilty.

The case emerged from what Francesco Nannucci, then head of Prato's police Flying Squad, described to Reuters as a war between two rival gangs, one made up of Chinese originally from Zhejiang and the other of Chinese originally from Fujian, for control of territory in Europe.

Despite keen police interest and multiple investigations in Prato, the gang violence has escalated in the past two years.

In July 2024, a Chinese businessman based in Prato was stabbed multiple times by a group of six men, including a former soldier, who had flown in from China "to protect, through violence, the business interests of the monopolistic group in the coat-hanger sector," prosecutors said in a statement.

All six were arrested and sentenced to 7.5 years in jail for attempted murder.

In April of this year, Zhang Dayong, Zhang's alleged right-hand man who was also charged in the China Truck case, was shot dead in Rome alongside his girlfriend. No-one has been arrested for those killings.

Tescaroli said emerging companies often with the prefix "Xin" - meaning "new" in Chinese - were trying to undercut established players, selling hangers at about 6 cents each compared to the previous market rate of about 27 cents.

"Since the volumes are vast, a few cents of margin on each piece guarantee gigantic profits," he said.

Chinese businesses in the textile district have long operated within what investigators call the "Prato system", marked by corruption and irregular practices, including labor and safety abuses as well as tax and customs fraud. These companies can appear and disappear overnight, engaging in a cat-and-mouse game with authorities to dodge taxes and avoid having to give workers proper contracts, according to Arturo Gambassi, a representative from the Sudd Cobas union, which defends workers' rights in the textile sector.

"In all the firms where we have initiated labor disputes, we saw that their business name had changed in the previous two years," he told Reuters. Police say fabrics are often smuggled in from China to avoid customs duties, while profits are sent back through illicit money-transfer channels, with up to 4 million euros shipped out of Rome's Fiumicino airport each week, according to prosecutors and police.

To maintain their competitive edge, the industry depends on cheap, round-the-clock labor, largely from China and Pakistan, with workers facing a backlash if they seek legal contracts.

On November 17, more than 15 Chinese citizens assaulted a union demonstration in Prato. Plain clothes police who were observing the protest were also attacked, with two officers needing hospital treatment, a police statement said.

Italian prosecutors succeeded in dismantling major Italian mob networks, notably Cosa Nostra, in part thanks to legislation introduced specifically to tackle the mafia.

The official mafia designation carries stiffer sentences and lets courts infer membership from conduct, a key advantage when prosecutors must overcome silence and intimidation.

Tescaroli is trying to get the courts to brand the Chinese gangs as mafia groups, but Barbara Sargenti, Italy's national anti-mafia prosecutor, questioned whether this would happen.

To establish that there is a Chinese mafia, Italy needs to map these organizations either from inside sources or with help from judicial and police authorities in China.

Sargenti said cooperation with China was proving "very difficult" and, so far, only one Chinese citizen had turned state witness within Italy, in a drug-related case.

Sargenti said China's police and judicial authorities had been in touch with Italy's justice ministry in recent months, saying it was willing to send officers collaborate with the Italians but there had been no follow up.

"Investigations are, let's say, very complicated," she said. Without the mafia designation or Chinese cooperation, Tescaroli's case in the China Truck trial relies on the fragile scaffolding of Italian procedure, and the willingness of translators to show up.

After the Tuscan interpreters made themselves unavailable, two new translators were appointed on November 17 - Chinese citizens from the northern port city of Genoa, outside Tuscany.

But court officials aren't claiming victory, yet, with the new translators saying they could not guarantee they would understand the dialects captured in phone taps that form crucial evidence in the case. The next hearing is scheduled for May 15.



‘Something Borrowed’: Dutch Bride Opts for Recycled Wedding

Sustainable development communications specialist and bride-to-be Lara Beters and groom Mathijs Dordregter walk through a ticket gate in Utrecht train station for their wedding inside the station as part of an initiative to highlight sustainability issues, in Utrecht on April 2, 2026. (AFP)
Sustainable development communications specialist and bride-to-be Lara Beters and groom Mathijs Dordregter walk through a ticket gate in Utrecht train station for their wedding inside the station as part of an initiative to highlight sustainability issues, in Utrecht on April 2, 2026. (AFP)
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‘Something Borrowed’: Dutch Bride Opts for Recycled Wedding

Sustainable development communications specialist and bride-to-be Lara Beters and groom Mathijs Dordregter walk through a ticket gate in Utrecht train station for their wedding inside the station as part of an initiative to highlight sustainability issues, in Utrecht on April 2, 2026. (AFP)
Sustainable development communications specialist and bride-to-be Lara Beters and groom Mathijs Dordregter walk through a ticket gate in Utrecht train station for their wedding inside the station as part of an initiative to highlight sustainability issues, in Utrecht on April 2, 2026. (AFP)

"Within like 30 minutes I knew this was the one," Lara Peters said of the second-hand wedding dress she had just worn to her marriage -- in the Netherlands' busiest rail station.

Peters, 42, had found the dress two days earlier in a shop run by "Free Fashion", a Dutch foundation devoted to recycling clothing to combat waste -- a cause close to her heart.

That is why she and her 44-year-old husband Mathijs Dordregter chose sustainability as the theme of their wedding -- with the help of Free Fashion.

The organization says it is the kind of trend people everywhere will need to adopt if humankind wants to curb over-consumption and its destructive effect on the planet.

"The message that during your wedding you can also choose sustainable options is very important to me," the bride explained.

Peters works in communications in the sustainable development field, so the couple's choice to hold their wedding ceremony in the bustle of Utrecht rail station had a certain logic to it.

Nina Reimert of the Free Fashion foundation helped organize the event.

"We know that in terms of emissions... producing a wedding dress is similar to something like 250 kilometers (155 miles) by car," she told AFP.

"And they're made of all different materials so they are really hard to recycle and almost everything is polyester," she added.

With 17,000 weddings a year in the Netherlands, she explained, that adds up to a lot of emissions. "It's a nightmare."

It was to draw attention to the over-consumption inherent in many weddings that the Free Fashion foundation decided to make an online appeal to convince couples to approach the happy day from a different perspective.

For as the old saying for weddings goes: "Something old, something new; Something borrowed, something blue."

- Love me, love my planet -

For Free Fashion's co-founder Lot van Os, opting for a second-hand bridal dress -- something that is normally only worn once -- sends a strong message.

"When you celebrate love you should also celebrate love for the planet," he told AFP.

Free Fashion's team of 800 volunteers is much in demand by local councils who want to meet their targets for reducing waste and recycling.

The foundation also works with businesses, helping them organize exchanges of clothing between employees.

For van Os, this practice of exchanging rather than constantly buying new items is a habit people are going to have to acquire in the future.

This "circular transition", he says is something we are all going to have to go through. "It's not a matter of if but when we are going to change," he said.

To underline the wedding's sustainability theme, a pop-up store at the rail station offered dozens of wedding dresses, free to anyone willing to sign up to the concept.

"There are now already enough clothes in the world for the next six generations," said a sign printed outside the store.

Both the bride and the bridegroom wore second-hand outfits for the big day -- as did all their guests.

And the sustainability theme did not end there, said Peters.

Their wedding meal was vegetarian -- less harmful for the environment -- and they travelled to the venue on bikes or by public transport.

"Everything I bought for the wedding was already used at other weddings," added the bride.

As for her wedding dress, she promised: "It's not going to be hanging in my closet!"


Nike’s Turnaround Put to Test as Middle East Conflict Poses New Risks

A man walks past Nike booth with installation of shoes at the 8th China International Import Expo (CIIE) venue in Shanghai, China, November 5, 2025. (Reuters)
A man walks past Nike booth with installation of shoes at the 8th China International Import Expo (CIIE) venue in Shanghai, China, November 5, 2025. (Reuters)
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Nike’s Turnaround Put to Test as Middle East Conflict Poses New Risks

A man walks past Nike booth with installation of shoes at the 8th China International Import Expo (CIIE) venue in Shanghai, China, November 5, 2025. (Reuters)
A man walks past Nike booth with installation of shoes at the 8th China International Import Expo (CIIE) venue in Shanghai, China, November 5, 2025. (Reuters)

Nike's efforts to steady its business ‌face a fresh setback, with executives cautioning that unrest in the Middle East could further complicate the turnaround, while the sportswear giant still struggles to regain traction in China.

The company on Tuesday warned of a sharp drop in current-quarter sales and slower-than-expected progress on its turnaround, as higher trade-related costs squeeze its margins and cautious consumers rein in spending.

Shares of the company slumped 10% to $47.35 in premarket trading on Wednesday and were on track to open at their lowest in over a ‌decade.

On an earnings ‌call, Chief Financial Officer Matthew Friend said ‌the ⁠conflict in the ⁠Middle East had already disrupted shopping behavior in parts of Europe, the Middle East and Africa, contributing to softer store traffic and weaker sportswear sales.

"The Middle East conflict is compounding the pressure, with Nike flagging traffic disruption and elevated inventory across EMEA," said Josh Gilbert, market analyst at eToro.

Nike CEO Elliott Hill, ⁠who took the helm in 2024, has ‌been looking to steady the company ‌as it grapples with several challenges, including a sluggish digital business, ‌stubborn excess inventory and intensifying competition from Chinese sportswear brands.

To boost ‌margins and bolster investor confidence, Hill has moved to rein in promotions, sharpen product innovation and refocus the business on core franchises such as running.

The efforts showed some signs of improvement in the ‌reported quarter, with the running category growing over 20%, but analysts still see a long road ⁠ahead for ⁠Nike.

At least eight brokerages cut their price target on the stock.

"We are turning at least somewhat frustrated, with seemingly slower than planned pace of recovery," Oppenheimer analyst Brian Nagel said.

The company's forward price-to-earnings multiple, a common benchmark for valuing stocks, is 25.47, compared with 13.54 for Adidas and Under Armour's ratio of 25.72, according to LSEG data.

"These earnings show Nike is keeping pace at a steady jog, but it keeps tripping over hurdles along the way," eToro's Gilbert added.

"Patience is clearly the price of admission."


From Plastic Jars to Transport, Iran War Drives up Beauty Industry Costs

Visitors browse stalls at the beauty industry Cosmoprof trade show, in Bologna, Italy, March 26, 2026. Picture taken with a mobile phone. (Reuters)
Visitors browse stalls at the beauty industry Cosmoprof trade show, in Bologna, Italy, March 26, 2026. Picture taken with a mobile phone. (Reuters)
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From Plastic Jars to Transport, Iran War Drives up Beauty Industry Costs

Visitors browse stalls at the beauty industry Cosmoprof trade show, in Bologna, Italy, March 26, 2026. Picture taken with a mobile phone. (Reuters)
Visitors browse stalls at the beauty industry Cosmoprof trade show, in Bologna, Italy, March 26, 2026. Picture taken with a mobile phone. (Reuters)

The Iran war is seeping into the cosmetics supply chain, pushing up the cost of everything from plastic jars and lipstick tubes to transport, and reminding the beauty industry that even a tub of face cream depends on fragile global trade routes.

Cost pressures were a recurring theme last week at one of the sector's largest trade fairs in the northern Italian city of Bologna, as executives watched Iran's blockade of the vital Strait of Hormuz shipping route approach a fifth week.

The Cosmoprof fair drew 3,100 exhibitors from 68 countries and 255,000 visitors from 150 nations, ranging from companies seeking packaging solutions to retailers scouting new products.

Cosmetics companies are primarily worried about higher raw material and transport costs due to rising oil prices ‌and disrupted shipping, five ‌industry executives told Reuters.

"We are beginning to see cost increases driven ‌by ⁠energy price inflation, compounded ⁠by delivery delays," said Simone Dominici, CEO of Italian cosmetics group Kiko, who estimates additional logistics-related costs of about 1.5 million euros ($1.7 million) for the group over the year.

Kiko, which sells lipsticks starting at 5 euros and mascaras from 7.5 euros, operates more than 1,000 stores worldwide.

"With so many containers stuck in the Middle East, there is a tighter container availability ... and goods are not being moved efficiently," Dominici said, adding that higher prices for some chemical components and packaging - much of it sourced from the ⁠Far East - would add further pressure.

As the Iran crisis upends supply ‌chains, Yonwoo, a container maker for L'Oreal and K-beauty firms, ‌said it was scrambling to secure stocks of plastic resin to manufacture the pots used for skincare and cosmetics.

ALTERNATIVE ‌ROUTES

Beyond higher costs, the industry could also face softer demand from consumers whose purchasing power ‌is being eroded by inflation, Dominici said.

"It's the perfect storm," he warned.

Milan-listed Intercos and privately owned Ancorotti Group, among Italy's largest contract manufacturers in the sector, said they had not yet faced major supply shortages but cited higher logistics costs, longer delivery times and rising raw material prices as challenges.

"Lead times have lengthened as routes have ‌become longer and ports more congested. What once took eight weeks now can take 12 to 14 weeks," said Ancorotti Chief Executive Roberto ⁠Bottino.

Some clients have turned ⁠to rail transport to reach Asia, Bottino added.

Ancorotti Group makes around 220 million euros in revenues per year from selling products to beauty brands worldwide.

Bottino said it was difficult to imagine supply-chain cost increases not ultimately being passed downstream.

"Middle East customers value quality and are willing to pay a premium for added value, so being unable to access these markets can have a negative impact," said Fabio Franchina, chairman of haircare products maker Framesi.

Franchina said the company's distributor in the region was exploring alternative delivery routes.

"They are looking at ... (options such as) shipping to Jeddah and then moving goods by road instead of routing them through Gulf ports," he said.

Some goods are currently being shipped by air rather than by sea, he added, further lifting costs.

Italy produced 18 billion euros of cosmetics in 2025, including 8.4 billion euros in exports, according to industry body Cosmetica Italia, making the country the world's fifth-largest exporter of beauty products and one of the leading producers of hair dyes, eye make-up and fragrances.