In this industrial province of Tuscany, home to Europe's largest textile hub, fraudulent practices by some Chinese companies have fueled a shadow economy built on tax evasion, undeclared labor and the exploitation of migrant workers.
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In these early days of July, the sun beat down fiercely on Seano. In the industrial zone of this small town in the province of Prato, at the heart of Tuscany, Italy, rows of nondescript warehouses stretched on. For several weeks, one of them had become the focus of mounting tension and anger. Acca SRL, a Chinese logistics company in the fashion sector, had been based there before deciding to shut down, putting around 100 jobs at risk.
Since March 2025, Acca SRL– which did not respond to our interview requests – has been under investigation by the European Public Prosecutor's Office for alleged tax fraud amounting to €71 million, while also facing trial in the Prato court for exploitation and caporalato, a system of illegal labor recruitment typical of mafia organizations.
At the entrance to the parking lot, wooden pallets were stacked, bristling with the orange flags of the Union for Democracy and Dignity (Sudd) Cobas. Under a tent, sitting on two camp beds and plastic chairs, about 20 workers passed the time by scrolling through their phones.
After an hour of apathy, the group suddenly sprang into action: A little further down the sidewalk, about 20 Chinese nationals accompanied by an Italian lawyer approached them. Fists raised, the strikers greeted them with shouts of "Acca thief!" and "Hands off our jobs!" Chinese business owners had come to retrieve goods blocked inside the company's warehouses. "There is €2 million worth of merchandise," explained the lawyer, who added that the goods "have been paid for and are waiting to leave the warehouses." Police stopped them from going any further, fearing a confrontation with the protesters. The scene was a reflection of the deep social tensions in Prato's fashion district.
Long union struggle
"In recent weeks, we realized that, in reality, Acca SRL hadn't closed, but had secretly shifted work to other streets or nearby parking lots," said Riccardo Tamborrino of the union. "We are certain they are employing people off the books, with no workplace safety, no rights at all, and they abandoned their warehouse just to circumvent the right to strike."
Ayaz, 30, originally from Pakistan, had been living in Prato for four years. Until Acca SRL closed, he worked as a warehouseman. "I worked 12 hours a day, seven days a week, no sick leave, nothing," he said, in fluent Italian. Ayaz pointed to the building where he used to load fabrics: "Those are the air-conditioned offices where the Chinese worked, while downstairs it was unbearably hot," he emphasized.
A subsidiary of the Chinese multinational Xinsitong, which specializes in logistics, Acca SRL managed the shipment of fast fashion made in Prato's textile hub to the rest of Europe. Locally known as "pronto moda" ("ready-to-wear"), this sector consists of thousands of workshops that transform textiles, mostly imported from China, and send them around the world.
Like other companies in the area, Acca SRL had regularized 90 workers in the spring after a long union battle, giving them a 40-hour, five-day work week with proper employment contracts. But for the shadow economy run by Chinese businesses, staying outside the law appeared to be a far more lucrative business. "The pressure to give up is intense," confided Mumtaz, another Pakistani worker encountered on the picket line. "They offered me €10,000 to leave Sudd Cobas."
A few kilometers away lies the Macrolotto, the beating heart of Prato's cheap ready-to-wear district. Here, flashy names like Fashion One, Glamour-Chic and Mister New Man stand alongside Chinese signage everywhere. At the foot of a faceless building, a few camp beds had been set up under tents. Among them was Abid, a 33-year-old Pakistani who had been on strike for three months. "I worked five years as a fabric cutter for a Chinese laundry business," he recounted. "Eighty hours a week for €1,200. Eventually, I got a contract for eight hours a day, but six months later, the boss came and told us he was shutting down because demand had changed and there was no more work."
Like many other exploited workers, Abid fell victim to the apri-chiudi ("open-close") system, which has become a hallmark of Prato's fast-fashion businesses. These fraudulent companies pay no taxes and would shut down overnight, only to reopen in another warehouse a few dozen meters away under a new business name. The workforce was simply a variable to be adjusted.
With more than 6,000 companies generating annual revenue of €2 billion, Prato's textile hub, the largest in Europe, is a microcosm that the Chinese mafia skillfully manipulates. This system is well known to Luca Tescaroli, Prato's public prosecutor. "The number of foreign nationals exploited by Chinese companies is rising in Prato's 'Chinatown,'" explained the magistrate from his office at the courthouse. "These businesses have gradually stopped recruiting their fellow nationals and now hire people from other countries, like Bangladesh, Pakistan or North African countries, thus diversifying the workforce they use. It's a kind of cannon fodder for entrepreneurial enrichment."
"Chinese organized crime is marked by highly efficient operations and a strong ability to infiltrate," continued Tescaroli, who previously worked in the anti-mafia offices of Rome and Florence. "It is rather closed in on itself, but it has learned from traditional Italian criminal groups how to infiltrate public administration, which makes these groups even more dangerous."
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The impunity with which many Chinese and Italian companies in the pronto moda sector continue to operate has sparked growing local frustration, to the point where some lines are starting to shift. At the end of 2025, several unions, including the Italian General Confederation of Labor and the Italian Confederation of Workers' Trade Unions (CISL), as well as employers' associations like Confindustria and Confartigianato, submitted a proposal to all local elected officials to step up labor inspections through stricter monitoring of tax evasion and labor exploitation. "With 20 more people, we could inspect at least 600 textile companies a year," said Fabio Franchi, the CISL's general secretary for the Florence-Prato area. However, the proposal has yet to materialize.
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Even local church authorities broke their silence, publishing a document at the end of June condemning a parallel economy in which everyone bears some responsibility. "We must have the courage to say that the 'Chinese economy' and the 'economy of Prato's residents' are not completely separate realities," the document reads. The church criticizes the fact that Tuscan business owners can sell or rent warehouses to dubious companies. The Diocese of Prato even proposed training courses "on a culture of legality and citizenship" to combat the mafia mentality.
The justice system presses on with its work to tackle abuses, using the same methods applied to Mafia informants in southern Italy. "We have put in place a protocol to protect workers who cooperate. We allow them to obtain residence permits for reasons related to justice, and we try to ensure they can find decent housing and new work," prosecutor Tescaroli explained. Since the start of 2025, 220 textile workers have reported their employers. Most of the companies involved were Chinese-owned; some have been forced to shut down, and their managers are now in jail or awaiting trial.
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On July 3, under 40°C heat, the Sudd Cobas picket line was violently broken up by police outside the former Acca SRL premises. At the same time, goods destined for the Acca warehouse in Seano were redirected to Shunda, another Chinese logistics company, which did not respond to our requests for comment and employs new, underpaid workers. "If you move the goods, you move the struggle," the union responded, promising new blockades to come.