China’s online shopping boom faces EU crackdown

Chinese online retailers’ flood of low-cost parcels to Europe could be reined in by a European Commission crackdown that would add more customs checks and fees.

A new European Union e-commerce action plan unveiled on Wednesday aims to increase coordination among customs and market surveillance authorities, with tighter enforcement of existing rules and more checks on faulty or counterfeit products. The Commission also pitched a new “non-discriminatory handling fee” to help customs to “properly control” imports, the proposal said.

The new rules could hit e-commerce platforms like AliExpress, Shein and Temu. Fashion retailer Shein, in particular, has taken Europe by storm with many clothing items for well under €10.

EU data shows that 4.6 billion low-value items — valued at under €22 and currently exempt from duty — reached European consumers directly last year, double the amount from 2023. 91 percent of such parcels come from China.

“The rise in e-commerce imports to the EU market has brought with it many challenges,” EU tech chief Henna Virkkunen said in a statement, calling for a “competitive e-commerce sector that keeps consumers safe, offers convenient products, and is respectful of the environment.”

The Commission also called on the European Parliament and Council of the EU — representing national governments — to fast-track talks on a customs reform, first tabled in 2023, which proposed scrapping a €150 parcel tax break blamed for fuelling low-cost Chinese online retail.

The removal of the exemption is projected to bring customs authorities an extra €1 billion annually.

It’s still unclear how much the new handling fee would be and how it will work.

“How big is the fee is something that we will determine with the co-legislator,” a Commission official briefed reporters ahead of the publication, stressing that “the goal is not to disincentivize the purchase [from third-country traders] but better equip the customs authorities.”

The Commission also announced that Shein will be facing a coordinated probe by European national consumer protection watchdogs over suspicions of widespread breach of EU rules.

“We welcome efforts that enhance trust and safety for European consumers when shopping online, and believe that a level competitive playing field can benefit the entire ecosystem,” a spokesperson for Shein said in a statement, committing to “examine how Shein can play our part in strengthening our industry to enhance the online shopping experience for European consumers.”

China-based rival Temu was already hit by a similar probe as well as a formal investigation under the EU’s content-moderation rulebook over the sale of illegal products and addictive designs.

China’s massive trade flows are also the target of U.S. action with U.S. President Donald Trump announcing tariffs this week. The United States Postal Service said on Tuesday it would “temporarily suspend” packages from China and Hong Kong until further notice, days after Trump signed an executive order to end a duty carve-out for packages worth less than $800.