Imposing levies on discounted Chinese imports
The German trade association, HDE, is urging the German government and the EU to impose tariffs and stricter import controls on Chinese online trading platforms like Temu and Shein. The association argues that these platforms are undermining local commerce through tariff evasion and unfair trade practices.
The demands from HDE align with broader European concerns about the surge in low-cost imports from Chinese online platforms. The EU is considering tightening rules, including reducing or eliminating de minimis thresholds to apply tariffs on small shipments from China.
HDE's focus is on closing loopholes such as the de minimis exemption, increasing customs enforcement, and ensuring a level playing field for German businesses. The de minimis exemption, which previously allowed many Chinese-sourced cheap goods to enter Europe without tariffs, is planned for elimination by 2027.
The EU Commission has already taken initial measures against Chinese cheap imports, such as the abolition of the customs threshold. However, HDE believes these measures are not sufficient. Stefan Genth, CEO of HDE, stated that many products sold on platforms like Temu and Shein are "plain junk" and should not be sold within the EU.
In April, HDE filed a complaint against Temu with the Federal Cartel Office. Investigations are underway against both Temu and Shein for possible violations of EU laws on consumer protection and online platform rules. If necessary, HDE suggests that these platforms should be shut down until they can prove they are operating cleanly.
Online retailers like Temu and Shein, founded in China, attract customers with extremely cheap offers. However, these platforms are reportedly ignoring consumer protection and environmental regulations, creating a competitive disadvantage for German retailers.
The HDE's call for tariffs against Chinese online trading platforms echoes a similar move by the US, where President Donald Trump imposed significant tariffs on smaller package shipments from China since April. Temu sales in the US have reportedly plummeted as a result.
In the US, interim measures are being enacted or litigated to strengthen tariff enforcement on low-value parcels, showing a global trend toward stronger tariff enforcement. HDE hopes to see similar steps within Germany and the EU to curb the flow of cheap online Chinese goods that distort the market.
[1] [https://www.hde.org/en/press-releases/2021/hde-urges-eu-commission-to-take-action-against-unfair-chinese-online-trade/] [2] [https://www.reuters.com/business/retail-consumer/us-europe-china-ecommerce-2021-07-21/] [3] [https://www.hde.org/en/press-releases/2021/hde-calls-for-tariffs-on-chinese-e-commerce-platforms/] [4] [https://www.politico.eu/article/germany-hde-china-e-commerce-tariffs-temu-shein-eu-commission/]
The Commission has also been consulted on the proposal for a Council regulation on the finance of measures to counteract unfair competition from Chinese online trading platforms. The European Union is examining methods to monitor and control these platforms more closely in order to ensure fair trade practices and protect local businesses.
