Every day, around 16 million small, low-value packages arrive in the EU, 91% of which come from China.
Many of those parcels contain items that European buyers order from cheap Chinese online shopping platforms like Teemu, Shein and AliExpress. Until now, parcels worth less than €150 ($171) were exempted from customs duties.
However, the EU this week ended that exemption and imposed a €3 levy on low-value imports to prevent unfair competition, and keep products that did not meet the bloc’s safety standards out of the European market.
“Temu and Shein often fail to comply with legal and regulatory requirements, introducing unsafe products to our market that can pose health risks, and driving many domestic retailers to the brink of ruin,” said Alexander von Preun, president of the German Retail Association (HDE).
According to the association, customs duty exemptions cost public finances at least €400 million annually.
According to MediaPanel data, in 2025, Teemu overtook Allegro as Poland’s most visited e-commerce platform. Justyna Szczudlik, China analyst at the Polish Institute of International Affairs (PISM), pointed to data security risks, intellectual property violations and the possibility that Chinese platforms could collect large amounts of consumer data from Polish users.
what comes next?
The new €3 flat-rate fee is a temporary measures It is expected to remain in place until July 1, 2028, while the EU develops a new digital services platform. Once the new system is operational, standard customs duties will apply depending on the value, origin and classification of the product.
The EU also plans to introduce a handling fee in November 2026 to help customs officials offset their rising costs as more and more parcels arrive. The amount has not been decided yet.
“The status quo is not an option,” EU Trade Commissioner Maros Sefcovic said after meeting Chinese Commerce Minister Wang Wentao in Brussels.
“My objective from the beginning has been clear: to start balancing trade relations between the EU and China. The gap is widening. China’s exports to the EU are growing while our market share in China is declining. This trend is not sustainable.”
bridging the trade gap
In 2025, the EU exported €199.6 billion of goods to China and imported €559.4 billion of goods, resulting in a trade deficit of €359.8 billion.
Rafael Jiménez Buendia, a senior researcher at the Mercator Institute for China Studies (MERICS), said China has been speaking for more than a decade about building a balanced trade relationship with Europe. However, trade data continues to show growing imbalances.
“There is no need to speculate about internal politics. China’s own public record is quite revealing,” Buendia said. “For a period, the language of rebalancing co-existed with trade data that appeared broadly consistent with it.”
China’s Wang and EU’s Sefcovic have agreed to set up a joint mechanism to monitor trade flows without any delay which will help restore balance in bilateral trade.
According to Zhao Yongsheng, a professor at the University of International Business and Economics in Beijing, the message is that both sides want to resolve disagreements through dialogue and negotiation, providing a stable foundation for long-term cooperation.
China criticizes EU law
China has criticized several recent legislative initiatives of the EU Commission, arguing that they harm Chinese interests.
An example is the proposed Industrial Accelerator Act (IAA) introduced in March 2026, which aims to strengthen European industry and make “Made in EU” a key condition for receiving public funding.
Under the current draft, Chinese companies would in most cases be excluded from public procurement projects in Europe.
In strategic sectors such as solar energy and electric vehicles (EVs), foreign investors will generally be limited to a 49% ownership stake and will require government approval.
The German Chamber of Industry and Commerce (DIHK) has criticized the proposal, warning that a “buy in the EU” policy could alienate trading partners and investors from outside the EU.
progress on rare earths
Despite their differences, the EU and China have moved forward together on the rare earth issue.
In response to US tariff measures, China implemented export controls on rare earth elements and permanent magnets. Earlier, the United States had restricted the export of advanced semiconductors to China.
Europe has suffered the consequences because China is the world’s largest producer of rare earth materials, which are needed to manufacture semiconductors, motors and turbines. Wang reportedly assured Brussels that existing export controls would not disrupt EU supply chains.
Chen Lingyan, a senior official responsible for import and export controls within China’s Ministry of Commerce, said European and German companies can apply for export permits for rare earth materials.
Officials review applicants carefully and want assurances that the content will be used internally rather than resold. According to Chen, about 90% of the German applications have been approved.
German Economy Minister Katharina Reich emphasizes that Germany is pursuing a pragmatic foreign trade policy.
He said Germany’s economic strength and security of supply depend on maintaining strategic partnerships, reliable supply chains, trade routes and investment opportunities. Germany wants deeper cooperation with China while ensuring greater fairness and more balanced trade relations.
In view of China’s fast-paced approach, the EU and Chinese officials are now planning to launch working-group discussions on concrete measures. Trade Commissioner Sefcovic is expected to visit China in October, where the two sides are expected to announce further agreements.
This article was originally published in German