Italian Industrial Districts and the Twofold Chinese Challenge - In recent decades Italy has seen large-scale inflows of immigrants from the less developed countries, including China. The paper focuses on Chinese immigrants in Italy’s fashion districts. Starting from the industrial district literature, and in particular the specific features of the district model, the causes and possible economic and social consequences of the emergence of an ethnic economy in Italian districts are analysed. General indications for intervention to transform the present challenges into opportunities for new local development in the context of the global economy conclude the paper.