Each day, approximately 16 million small, low-cost parcels enter the EU, with 91% originating from China.
Numerous packages include goods purchased by European customers through inexpensive Chinese e-commerce websites like Temu Shein and AliExpress. Up until now, packages worth under €150 ($171) were free of import taxes.
Nevertheless, the EU has now removed this exception and introduced a fee of €3 ($3.40) for small-value shipments, aiming to address what it views as unjust competition and maintain standards. goods that fail to comply with the block's safety regulations away from the European market.
Temu and Shein frequently do not meet legal and compliance standards, bring hazardous items into our marketplace which could present health dangers, and are pushing numerous local merchants close to collapse," stated Alexander von Preen, head of the German Retail Association (HDE).
The association states that the exemption from customs duties costs public finances a minimum of €400 million each year.
In 2025, Temu became Poland's top visited online shopping site, surpassing Allegro, as reported by Mediapanel statistics.
Justyna Szczudlik, an expert on China at the Polish Institute of International Affairs (PISM), highlighted concerns regarding data security threats, breaches of intellectual property rights, and the potential for Chinese platforms to gather extensive user information from Poles.
What comes next?
The new €3 flat-rate charge is a short-term solution intended to stay effective until July 1, 2028, as the EU works on establishing a new digital services platform. After the updated system becomes functional, regular customs tariffs determined by a product's worth, source, and category will be implemented.
The European Union intends to introduce a processing charge beginning in November 2026 to assist customs agencies with increasing expenses. as an increasing number of packages come in . The sum of this charge remains undetermined.
"Sticking with the current situation isn't acceptable," stated EU Trade Commissioner Maros Sefcovic following his meeting with Chinese Commerce Minister Wang Wentao in Brussels.
From the beginning, my aim has been straightforward: to start equalizing the trading relations between the European Union and China. The disparity is growing. China's exports to the EU continue to increase, whereas our presence in the Chinese market continues to decline. This pattern cannot last.
Bridging the trade gap
In 2025, the European Union sent products valued at €199.6 billion to China but received items totaling €559.4 billion, leading to a commercial imbalance of €359.8 billion.
Rafael Jimenez Buendia, a senior research fellow at the Mercator Institute for China Studies (MERICS), pointed out that China has been emphasizing, for over ten years now, the importance of establishing equitable trade ties with Europe. Nevertheless, the Trade statistics keep indicating an increasing disparity .
No speculation regarding internal affairs is necessary. China’s public records provide sufficient insight," stated Buendia. "At one point, the rhetoric of rebalancing existed alongside trade figures that largely aligned with it.
Consequently, Minister Wang and Commissioner Sefcovic decided to create, as soon as possible, a collaborative system for tracking commercial movements aimed at achieving equilibrium in their mutual trade.
As stated by Zhao Yongsheng, a faculty member at the University of International Business and Economics in Beijing, the key point is that both parties aim to address differences via discussion and bargaining, establishing a solid foundation for sustained collaboration.
China criticizes EU legislation
The People's Republic of China has expressed disapproval towards multiple new legal proposals introduced by the European Union’s commission, asserting that these measures negatively impact Chinese economic concerns.
A sample is the suggested Industrial Accelerator Act (The IAA), launched in March 2026, aims to boost European industries and enhance competitiveness. "Made in EU" A crucial requirement for obtaining government financial support.
According to the latest version, Chinese firms would generally not be eligible for European public tenders.
In key industries like solar energy and electric vehicles (EVs), overseas investors typically can hold up to only 49% of shares and must obtain governmental authorization.
The German Association of Chambers of Commerce and Industry (DIKH) has expressed disapproval of the plan, cautioning that a "Purchase within the EU" initiative might distance trading allies and external investors.
Progress on rare earths
Although they differ, the European Union and China have drawn nearer regarding the matter of rare earth elements.
In reaction to U.S. tariff actions, China implemented restrictions on the export of rare earth materials and permanent magnets. Previously, the United States had imposed limitations on the shipment of high-end semiconductor chips to China.
Europe has experienced repercussions as China remains the global leader in producing rare earth elements, crucial for making chips, electric motors, and wind turbines. According to reports, Wang reassured Brussels that current export restrictions would not interfere with European supply lines.
Chen Lingyan, an experienced officer overseeing trade regulations at China's Ministry of Commerce, stated that European and German firms have the option to request authorization for exporting rare earth elements.
Officials thoroughly examine each application and demand guarantees that the resources will be utilized for internal purposes instead of being sold again. As stated by Chen, about 90% of German submissions have received approval.
Germany's Economic Affairs Minister Katharina Reiche highlighted that the country is following a practical approach in its international trade policies.
She mentioned that Germany's economic power and secure supplies rely on sustaining strategic alliances, dependable supply networks, trade corridors, and investment prospects. Germany aims for enhanced collaboration with China while promoting increased equity and more equitable trading relationships.
Following China's rapid development style, EU and Chinese representatives are set to initiate working group talks on specific actions. Trade Commissioner Sefcovic is scheduled to visit China in October, during which both parties aim to reveal additional accords.
This piece was first released in German
Author: Dang Yuan