China urges EU to reconsider parcel levy amid Shein, Temu impact concerns

Brussels is considering a €2 handling fee on low-value parcels from outside the bloc, prompting Beijing to warn against measures that could hurt Chinese e-commerce exports

China has urged the European Union (EU) to ensure a fair and inclusive trade environment, following reports that Brussels is planning a €2 handling fee on low-value parcels imported directly by European customers from non-EU countries—most of them from China.

 

According to a report by the South China Morning Post, the fee proposed by the European Commission could affect fast-growing Chinese e-commerce giants like Shein and Temu, both of whom rely heavily on direct-to-consumer shipping models.

 

What is EU proposing?

The European Commission is considering a 2 euro (US$2.27) handling fee on packages valued at 150 euros or less, which are shipped directly to European customers from outside the region. The proposal is aimed at helping Brussels cover the growing cost of customs and safety checks amid a surge in cross-border online shopping. For goods sent to EU-based warehouses instead, the charge would drop to just 0.50 euros per item.

 

 

The new levy is projected to generate around 3 billion euros ($3.4 billion) in annual revenue. While no formal timeline has been announced, France, which has spearheaded the measure, has expressed hope of implementing it by 2026. The relatively low amount of the fee could help expedite its adoption across the EU, despite the usual delays in gaining unanimous support from all member states.

 

While the charge is modest, it shows a growing unease within the EU about the volume of low-value imports from China and the need to level the playing field for domestic retailers. 

Shein, Temu invest in European distribution hub

According to EU figures, nearly 91 per cent of the roughly 4.6 billion small parcels received by the bloc in 2024 came from China. This places companies like Shein and Temu, whose rapid European expansion has hinged on direct-to-consumer shipping, in the spotlight. Both firms have been investing in local distribution hubs, which could potentially reduce the financial impact if those centres qualify for the lower handling fee.

 

China urges EU to maintain inclusiveness in trade

Beijing has expressed concern that the plan may discriminate against Chinese businesses and contradict the EU’s stated commitment to openness. It has urged the bloc to uphold principles of non-discrimination and inclusiveness.

 

EU trade measures on Chinese imports

The European Union has taken several firm measures to curb the influence of Chinese goods in its market, aimed at protecting European industries and ensure fair competition.

 

In 2023, the EU imposed significant tariffs, ranging between 7.8-35.3 per cent, on Chinese electric vehicles, targeting state-backed manufacturers like BYD and Geely to prevent market distortion.

 

In 2025, anti-subsidy duties were also applied to Chinese construction machinery that benefited from government support. The EU has responded to Chinese retaliatory pressure by defending European exports such as Cognac at the World Trade Organisation.

 

Meanwhile, the 2023 enforcement of the Foreign Subsidies Regulation gave the EU legal power to block or restrict market access for foreign-subsidised firms. Additionally, through the Critical Raw Materials Act proposed in 2023, the EU is working to reduce its dependency on Chinese imports in strategic sectors by diversifying suppliers and strengthening domestic production.

 

Elsewhere, Canada’s finance minister has also confirmed that low-value imports were a key topic during recent G7 finance talks.