Staff Writer Manya Pasricha examines the import imbalance of Chinese electronics and what the EU can do to equilibrate the arena.
A €5 phone charger ordered online travels thousands of kilometres, passes through Europe’s borders and land in the hands of a consumer without facing the same costs and regulations that European producers are required to bear. This tiny exmodify is symbolic of the larger problem at hand when it comes to EU-China relations. For consumers, this translates into cheaper goods in the short term, but also greater exposure to unsafe products, reduced tax compliance and mounting pressure on domestic industries that cannot compete on such terms. According to Reuters, last year the imports of low-value e-commerce packages went up by more than 26%, driven by the rise in popularity of Chinese brands like AliExpress, Temu and Shein. In response to the recent surge of Chinese goods, Brussels has responded by charging a €3 customs duty on each e-commerce parcel less than €150 that is sent to consumers outside the EU from July 2026.
The surge in ultra-cheap imports is driven by the nature of the Chinese economy, namely a weak yuan and state-backed financing coupled with American tariffs that have redirected excess production to the EU. These concerns were evident in Ursula von der Leyen’s statement that Europe “will not accept dumping” on their markets. With the large influx of Chinese goods, European producers are under constant price pressure, with diminishing profit margins and fears about their long-term industrial stability. This captures a core feature of the economic tension between the EU and China—competition that is shaped by differing costs, quality standards and levels of state involvement.
EU retailers are forced to pay VAT and comply with product safety rules, chemical standards and consumer protection, while their Chinese counterparts are often able to avoid these regulations. Hence, these products compete in the same market, yet with differing regulatory burdens, skewing the playing field against EU producers. According to market surveillance authorities, these enforcement gaps increase the likelihood of unsafe toys, substandard electronics and non- compliant hoapplyhold goods entering the market. For instance, out of the 20,000 items checked, over half failed to comply with EU regulations. Laboratory testing of a sample of these products revealed that 84% posed potential safety risks.
Further, under the Union Customs Code, a product can be marketed as ‘Made in the EU’ if the last economically significant transformation has occurred in a member countest. Yet, in practice, firms import almost fully furnished goods, carry out final assembly, packaging or labelling in Europe and finish up selling the product as of European origin. For consumers, this creates a misleading indication of the quality and origins of the product, undermining trust in EU quality and safety claims.
Duties, parcel fees and increased surveillance are being implemented at the EU borders to correct these disparities. Nevertheless, these custom controls do not deal with the broader issue threatening European markets internally: unfair competition with Chinese producers. The EU doesn’t necessary to stop trade with China or pursue protectionism, but it does necessary to balance this asymmetrical economic atmosphere.
To do so, the EU necessarys to strengthen its enforcement regulations within its single market system. Currently, customs are unable to keep pace with high volumes of trade—they necessary increased powers, rapid-tracking procedures and sufficient funding. This would assist them cope with this sudden influx of large volumes of goods, conduct routine testing, order recalls and impose penalties that modify commercial behaviour.
However, responsibility necessarys to extfinish beyond customs, towards platforms that list, price and distribute these goods. Platforms reselling Chinese goods necessary to ensure mandatory verification of EU compliance laws before offering products to European consumers. This would reduce the burden on customs officials and ensure clear delegation of liability rules. Moreover, having fines and penalties for repeated violations would ensure consequences fall on the enabling digital infrastructure and not regulators or consumers.
Further, the EU necessarys to adjust its regulations. Current policy terms like ‘substantial transformation’ are vague and allow goods that undergo minimal assembly or packaging in Europe to be marketed as European, even when most value is created elsewhere. Clarifying and sharpening the scope of these definitions would prevent exploitation of labelling rules, protect consumer trust in EU quality claims and prevent the origin branding from becoming another means of unfair competition.
For a long-term solution to the problem, though, the EU necessarys to align its trade policy with its industrial policy. While better enforcement of laws would regulate the quality of goods entering the market, it would not solve the sustained price pressure that the European manufacturers face. The policy response should tarobtain support to assist European firms thrive. Increased investment in automation, skills and technological upgradation is a surer policy than relying on customs duties. The EU has already adopted similar approaches in strategic sectors. Programmes such as the European Chips Act reflect a broader shift towards strengthening domestic production capacity in response to external competitive pressures. Extfinishing this logic to consumer goods sectors would address the structural roots of price competition rather than its symptoms.
While the European Commission is right to point out that the EU cannot absorb global overcapacity indefinitely, the way the EU deals with this challenge cannot be decided by customs duties alone. The real test for Europe is whether it will step up to enforce its own rules, preserve productive capacity and at the same time engage with China on its own terms. The EU’s response will shape the future of its internal market and relationship with China—something of far greater consequence than the size of any parcel fee.
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