EU Commission Targets Shein and Temu in Crackdown on Cheap Chinese Goods

The European Commission is taking significant steps to address the influx of inexpensive goods from Chinese retailers such as Shein and Temu, which currently benefit from existing regulations that exempt items priced below EUR150 from import duties. Recent data indicates that between 2022 and 2024, approximately 4.15 billion packages from China fell under this threshold, raising concerns among European authorities.

In response, the Commission plans to implement stricter controls through the establishment of a new customs authority aimed at ensuring that imported goods comply with EU standards. Under the current regulations, the responsibility for customs duties lies with the buyer, but forthcoming changes are expected to shift this burden onto the platforms themselves, making them accountable for import taxes and duties on the products they sell.

Discussions are ongoing regarding the potential removal of the EUR150 limit and the introduction of processing fees for each package. This initiative aims to manage the staggering volume of packages entering the EU, which has reportedly quadrupled over the past two years, reaching 4.6 billion.

The surge of goods from China has drawn criticism from consumer advocates and local retailers, who argue that platforms like Shein and Temu flood the market with low-cost mass-produced items that often fail to meet environmental and production standards. Additionally, many of these products do not comply with European sustainability and safety protocols, particularly in the technology sector, where concerns about safety standards have been raised.

Domestic competitors have long advocated for these regulatory changes, with industry leaders emphasizing the need for greater accountability among e-commerce platforms. For instance, Marc Opelt, a prominent figure in the e-commerce sector, has previously highlighted the environmental implications of cheap imports, calling for heightened political awareness and action regarding climate change and resource management.

The competitive pressure exerted by Shein and Temu is not only affecting smaller European retailers but is also challenging major players like Amazon. The forthcoming regulations could have widespread implications on how these platforms operate within the European market.