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Economy

New Challenges: Can Europe's New Customs Regulations Impact the Chinese Online Market?

Europe's new customs regulations do not seem to hinder the growth of Chinese online platforms like Temu and Shein. Changes in the supply chain may have short-term consequences.

New Challenges: Can Europe's New Customs Regulations Impact the Chinese Online Market?
New Challenges: Can Europe's New Customs Regulations Impact the Chinese Online Market?

With the approval of new customs regulations in Europe, the import of cheap goods from China faces challenges. However, it seems that these changes will not easily affect the success of platforms such as Temu and Shein.

Short-term Impacts on the Supply Chain

As of July 1, a fixed customs fee of three euros has been established for orders from non-European countries valued at less than 150 euros. This measure aims to create more equality in the European market and strengthen competition with European suppliers. However, according to recent statistics, these regulations cannot prevent the growth of the Chinese platform market. Particularly, in the second quarter, the online sales share of these platforms in Germany increased to 5.3 percent.

Large online companies are quickly changing their supply chains. According to reports, some of these companies import goods in large packages to the European Union and distribute them within Europe after completing customs procedures. These changes will not be immediately visible, and their impact will take time.

Leipzig/Halle Airport Outlook

Leipzig/Halle Airport is also affected by these developments. According to a spokesperson for the airport, online trade from China is increasingly growing, and two new logistics companies have been established to facilitate this trade in the region. However, it is expected that this area will only temporarily experience a decrease in cargo volume.

Considering that most goods are imported to Europe by ship or through existing warehouses in Poland and the Czech Republic, the DHL center in Leipzig is specifically designed for urgent shipments. This means that only a small percentage of orders from Chinese platforms will pass through this center.

Despite these changes, the German trade union views these new costs as a positive step towards creating equality in the market. However, this entity warns that this tax cannot replace effective market oversight, and there remains a possibility of unauthorized goods entering the market.