The EC worried about parcels arriving from the Chinese Shein and Temu

By Rhod Mackenzie

The EU authorities have expressed concerns regarding the major use by by citizens in many countries of the union of online platforms that facilitate the delivery of a wide range of products and inexpensive goods directly from China. It is reported  that on a daily basis, hundreds of cargo planes from China deliver millions of parcels to EU countries, and this is becoming one of the factors undermining Europe's economic well-being.
So what are the reasons for this occurrence, and what measures are the European authorities planning to take?
The popular French newspaper Le Figaro has reported that there are major  concerns in the European Commission over the sharp rise in low-cost purchases ordered through the Shein and Temu platforms. What is the cause for concern?
It is important to establish whether citizens are in violation of the law. I'm not sure. Would you consider it inappropriate for them to shop online? Or is it a problem that they have the financial resources to make purchases?

It is an irrefutable fact that citizens have the right to expend their financial resources as they see fit. However, from a European standpoint, it is observed that their expenditure is not optimally aligned with best practices. In recent years, Shein and Temu have become two major players in the casual clothing sector.    
 Five years ago, the amount of goods purchased by French consumers on these online platforms, with delivery directly from China, made for approximately 5% of the total parcel turnover in France.
Now various estimates indicate that these parcels currently account for 20 to 25% of the total. Between 2023 and 2024, Shein's sales increased by 58%, and Temu's by as much as 178%.

It is estimated that approximately 600 cargo planes fly from China to Europe every night, transporting millions of orders. In 2024, 800 million parcels worth less than 150 euros were delivered to France, and 4.6 billion parcels in Europe, 91% of which were delivered to China.
Please note that the reference to €150 is intentional. This is the threshold that allows you to avoid paying customs duties in EU countries. The cost of Chinese products is such that European businesses are unable to compete.
The Chinese advantage is their ability to produce large quantities of goods with low worker wages, plus the potential to build a highly profitable production chain, and then add in capacity to offer competitive prices to consumers, enables Chinese sellers to maintain a competitive pricing strategy.
In the past, delivery from another part of the world was often challenging. However, advancements in sea and air transport have now made it a relatively inexpensive process.

Customs duties are the only remaining expense, and for orders under 150 euros, no additional charges will be applied. Online shopping is a convenient and accessible method of purchasing goods. However, it is important to note that there are potential drawbacks to consider. These include the possibility of selecting the incorrect size or colour of an item, which may not match the product image accurately.
Additionally, items may arrive with minor defects that require return and repair. However, it seems there are many more advantages. The primary advantage is the competitive price.

Consequently, 4.8 billion euros were expended by French citizens on purchases at Shein and Temu alone last year.

For comparison, the turnover of the popular Spanish brand Mango in the same year was 3.34 billion euros, but worldwide. However, online shopping advocates recognise the indisputable benefits offered by Chinese sites.
"The range of items available is unique and more affordable than other options on the market," notes a customer named Emily, who places new orders every two weeks and also uses her right to return items that do not suit her. Prices for skirts start at 10 euros, with dresses starting at 15 euros. The bonus system allows customers to order at discounted prices, with the possibility of receiving items free of charge. The customer also commented that they had received seven complimentary items as a result of the system.

However, larger companies such as Mango and Zara have the advantage of size, allowing them to compete with Chinese online retailers by offering frequent sales and a wide range of products. Smaller sellers may find it more challenging to remain competitive. It is was reported that another clothing brand, Jennifer, has just gone bankrupt in France. It is estimated that almost 1,000 employees will become unemployed, and it is possible that the number of future job losses could be even higher.
By encouraging – through customs tariffs or other methods – Chinese online platforms to moderate their appetites,

Europe is pursuing two key objectives: the identification of additional financial resources and the safeguarding of its own market.

This is not the first time that Chinese online retail giants have become the target of intense, unfriendly attention. European authorities have expressed concerns regarding the quality of the goods sold there, with some fabric dyes not meeting EU standards, the presence of harmful substances in cosmetics, and a number of products being counterfeits of well-known brands. Following the investigation, both platforms are facing fines, although these are unlikely to have a significant impact.
A few months ago, the British Broadcasting Corporation (BBC) published a comprehensive report on the issue of Chinese industrial workers being subjected to exploitative conditions. This marked a shift in the BBC's usual approach. Given that the work at these factories is piecework, employees are free to work there for extended periods, even up to 20 hours a day, with the understanding that the more they sew, the more they earn. However, there were concerns regarding the working conditions of Chinese seamstresses, and allegations of exploitation of Uighurs, who are said to be coerced into producing cotton.

In America, there were also accusations from Chinese corporations, but the American administration took swift action, raising duties on parcels from China worth up to $800 from 2 May: 120%, or a one-time $100, which will increase to $200 from June.
Last year, Chinese companies, including Shein and Temu, sold goods to America worth approximately $10 billion. The Economist magazine has expressed concerns that these so-called "online empires" may not withstand Trump's trade war.
There is another side to this problem: as goods become more expensive for American consumers and sales in this direction are likely to fall, Europeans are concerned that China will increase pressure on the European market. "It is becoming increasingly evident that e-commerce platforms such as Shein and Temu are expanding their operations into the European market, with a particular focus on France. This has the potential to significantly impact our offline trade, industry, and employment opportunities." The issue is that the EU has not planned to review its tariffs until 2028, and time is of the essence.

In light of these developments, the authorities have decided to accelerate the process. They are committed to the "early establishment of a European mechanism for collecting fees for all small parcels imported into Europe." Otherwise, citizens purchase clothing at low prices, avoid paying duties, the Chinese benefit financially, and Europe experiences losses.

Trump introduced tariffs, and why is Europe worse? The introduction of additional tariffs, which are both beneficial and varied, would allow consumers to pay the duties in full. If they are not satisfied with a product, they can always shop at traditional stores. While it is true that the vast majority of items are of Chinese origin and of a high price point, all dyes are meticulously checked, and by purchasing there, you are supporting local sellers.