China asks EU to reconsider parcel levy over Shein, Temu troubles
China calls on the EU to reassess the parcel levy in light of concerns regarding the effects on Shein and Temu. China has called on the European Union (EU) to guarantee a fair and inclusive trade environment, in light of reports indicating that Brussels is considering a €2 handling fee on low-value parcels imported directly by European customers from non-EU countries—predominantly from China. A report by the South China Morning Post indicates that the fee proposed by the European Commission may impact rapidly expanding Chinese e-commerce giants such as Shein and Temu, both of which depend significantly on direct-to-consumer shipping models.
The European Commission is contemplating a handling fee of 2 euros (US$2.27) for packages valued at 150 euros or less, which are shipped directly to European customers from outside the region. The proposal seeks to assist Brussels in addressing the escalating expenses associated with customs and safety inspections, which have risen in tandem with the increase in cross-border online shopping. For goods dispatched to warehouses located in the EU, the fee would decrease to a mere 0.50 euros per item. The new levy is anticipated to yield approximately 3 billion euros ($3.4 billion) in yearly revenue. Although a formal timeline remains undisclosed, France, the driving force behind the initiative, has conveyed optimism about its implementation by 2026. The comparatively modest fee may facilitate its swift adoption throughout the EU, notwithstanding the typical delays in achieving unanimous backing from all member states.
Although the charge is modest, it reflects an increasing discomfort within the EU regarding the influx of low-value imports from China and underscores the necessity to create a more equitable environment for domestic retailers. EU figures indicate that nearly 91 per cent of the approximately 4.6 billion small parcels received by the bloc in 2024 originated from China. This positions companies such as Shein and Temu, whose swift expansion in Europe has relied on direct-to-consumer shipping, in the limelight. Both firms have been investing in local distribution hubs, which may potentially mitigate the financial impact if those centres qualify for the lower handling fee.
China calls on the EU to uphold inclusiveness in trade. Beijing has articulated apprehensions that the plan could potentially disadvantage Chinese enterprises and run counter to the EU’s professed dedication to transparency. The bloc has been urged to uphold principles of non-discrimination and inclusiveness. Trade measures implemented by the EU concerning imports from China. The European Union has implemented a series of decisive actions to limit the impact of Chinese products within its market, with the objective of safeguarding European industries and maintaining equitable competition.
In 2023, the EU enacted substantial tariffs, varying from 7.8 to 35.3 percent, on Chinese electric vehicles, specifically aimed at state-supported manufacturers such as BYD and Geely to avert market distortion. In 2025, anti-subsidy duties were imposed on Chinese construction machinery that received government support. The EU has countered Chinese retaliatory pressure by advocating for European exports, including Cognac, at the World Trade Organisation. In the interim, the enforcement of the Foreign Subsidies Regulation in 2023 has endowed the EU with the legal authority to impede or limit market access for firms that benefit from foreign subsidies. Furthermore, via the Critical Raw Materials Act proposed in 2023, the EU aims to diminish its reliance on Chinese imports in key sectors by broadening its supplier base and bolstering domestic production.
