The European Union’s decision to end its customs duty exemption for low-value imports is already having a measurable impact on cross-border e-commerce. Since July 1, 2026, goods in consignments valued at up to 150 euro have been subject to a temporary 3 euro customs duty. The charge is calculated according to the tariff categories of the goods in each consignment, rather than being applied as a flat fee to every parcel. The measure marks a significant change for platforms that built their business models around shipping large volumes of low-priced goods directly to European consumers.

Early figures suggest that the effects are substantial. In Germany, combined sales by Shein, Temu, and AliExpress fell by 35.5 percent year on year in the third quarter of 2026, to 566 million euro. Their combined share of the German online retail market also declined, from 5.3 percent in the second quarter to 3.1 percent in the third, according to the German E-Commerce and Distance Selling Trade Association (BEVH). At Liège Airport, a major European hub for e-commerce freight, the volume of small parcels fell by 42 percent after the new duty took effect. Yet the airport handled almost the same total cargo tonnage in the third quarter as it had a year earlier, suggesting that the decline in small-parcel traffic has not translated into a comparable fall in overall freight activity.

These figures point to a significant disruption of the low-value parcel model, although they do not yet establish how much of the lost business has shifted to European retailers or other forms of distribution. These changes matter beyond the immediate performance of individual platforms. Chinese e-commerce companies have become an increasingly visible part of the commercial relationship between China and Europe, connecting Chinese suppliers with European consumers through digital marketplaces and cross-border logistics networks. As the EU changes the conditions under which these platforms operate, it is also changing how Chinese businesses can access the European market.

The question, then, is not simply whether the new rules will curb the influx of low-value imports. It is whether Europe can address legitimate concerns over customs enforcement, product safety, and fair competition without unnecessarily restricting consumer choice or the commercial connections that have developed between the two markets.

A New Channel in China-EU Trade

China-EU trade has long been shaped by the exchange of manufactured goods, disputes over market access, and competition between their industries. The growth of platforms such as AliExpress, Temu, and Shein has brought a different kind of business relationship into view. Chinese manufacturers and sellers can now reach European consumers directly through online marketplaces, with less reliance on the importers, distributors, and retail chains that traditionally connected producers to overseas markets. For smaller businesses in particular, these platforms offer a relatively accessible route to international customers. Their appeal to consumers rests largely on low prices and a wide selection of products.  

This growth is taking place within an already substantial trading relationship. In 2025, EU-China trade in goods and services exceeded 880 billion euro. The EU imported 571.3 billion euro in goods from China and exported 199.5 billion euro, leaving a goods trade deficit of more than 370 billion euro. Trade in services was more balanced, with EU exports to China reaching 67 billion euro and imports standing at 45.8 billion euro. Cross-border e-commerce remains a relatively small part of this overall trade, but it is changing how some Chinese businesses enter the European market and how European consumers buy from them.

Nor is this trade confined to parcels sent directly from China. An OECD study of online marketplaces in Poland, Latvia, and Lithuania described how AliExpress has worked with Cainiao, Alibaba’s logistics arm, to establish a 10,000-square-metre fulfilment center near Łódź, allowing sellers to dispatch orders from Poland. AliExpress also opened its marketplace to Polish sellers in 2024. Temu has followed a similar path in expanding the role of local businesses: its Local Seller Program was opened to sellers in the Baltic states in October 2025, enabling them to sell through the platform and fulfil orders in their own markets.

These developments show that Chinese platforms are not only bringing Chinese products to European consumers; they are also providing channels through which European sellers can reach customers, while relying on local logistics and fulfilment services. This does not remove the competitive tensions with European retailers. It does, however, make the economic relationship harder to describe simply as Chinese exports competing with European products. The platforms are becoming part of the commercial infrastructure through which businesses on both sides reach consumers.

Regulation Beyond the Border

The expansion of Chinese e-commerce has brought platform governance into the EU’s trade debate. Regulators are no longer concerned only with whether imported goods meet European standards. They are also examining how marketplaces screen sellers, promote products, and handle consumer complaints.

The EU’s Digital Services Act (DSA) applies to platforms serving users in the EU, regardless of where they are based. In May 2026, the European Commission fined Temu 200 million euro for failing to properly assess the risks of illegal products on its marketplace. Its investigation included mystery shopping tests that found safety problems with selected chargers and children’s toys. In July, AliExpress was fined 550 million euro for failures to assess and mitigate risks relating to illegal, unsafe, and counterfeit products. Separately, the European Consumer Organization (BEUC) published tests by consumer groups in several countries that identified safety problems in products purchased on Temu, including toys, cosmetics, and electrical goods. 

These findings should not be taken to mean that all products sold on Chinese platforms are unsafe. They do show why regulators are placing greater responsibility on marketplaces, rather than treating them simply as intermediaries. Consumer protection authorities have also challenged Temu’s and Shein’s use of misleading discounts, pressure-selling tactics, and inadequate information on returns and refunds. For Chinese platforms, compliance with European rules is increasingly a condition of maintaining access to the market.

Customs Reform and Changing Business Models

Customs enforcement is another source of pressure. The European Commission recorded approximately 5.88 billion low-value imported items in 2025. These consignments accounted for 97.9 percent of imported items but only 2.1 percent of total import value, with an average value of 8.82 euro. China accounted for 93 percent of this trade by volume and 78 percent by value. The figures cover the wider low-value import market, not individual platforms, but they illustrate the scale of the challenge facing customs authorities.

The EU has responded by removing the 150 euro customs duty exemption and introducing the temporary 3 euro duty from July 2026. A separate 2 euro handling fee, also calculated by product category, took effect on November 1. Both measures apply to relevant imports from outside the EU, not specifically to China. Nevertheless, China’s dominant share of low-value imports means that Chinese platforms and sellers are particularly exposed.

The longer-term competitive effects are less clear. Chinese platforms are already adjusting their business models in response to the new charges. Reuters reported in October 2026 that AliExpress was expanding local warehousing and Shein was increasing warehouse capacity in Poland, while Temu had offered some customers discounts to offset the additional costs. These moves build on earlier efforts to establish a local presence. As mentioned above, AliExpress operates a fulfilment center near Łódź in cooperation with Cainiao, while Temu’s Local Seller Program allows businesses in the Baltic states to sell and fulfil orders locally. Such arrangements mean that the platforms’ European presence increasingly involves local businesses and logistics, not just imports from China.

Yet established European platforms remain strong. In Poland, Allegro accounted for 64 percent of traffic to general online marketplaces in 2025, compared with 11 percent for Temu and 8 percent for AliExpress. These figures measure engaged website traffic, not sales, but illustrate the continued strength of local competitors. 

Consumer Demand and the Future of China-EU Digital Trade

European consumers are an important part of this story. The European Central Bank’s April 2026 Consumer Expectations Survey found that more than half of euro-area respondents had used Chinese e-commerce platforms, while one in five shopped on them at least once a month. Low prices and product variety were the main attractions. Almost two-thirds of orders were worth no more than 25 euro. Use was particularly widespread in Greece, Portugal and Spain, but less common in Germany and France. Yet concerns over product quality, safety and environmental impact remain, raising questions about how to sustain consumer confidence as this market grows.

These developments point to a broader shift in China-EU economic relations. Chinese e-commerce platforms are no longer simply channels for exporting goods to Europe; they increasingly connect Chinese suppliers with European consumers, merchants and logistics providers. This creates commercial opportunities, but also new challenges for market governance. 

For the EU, the task is to enforce common standards without discriminating on the basis of business origin. For China, it is to ensure that its companies can compete under transparent and predictable rules. The China-EU Trade and Investment Consultation mechanism could offer a channel for addressing these issues. Although e-commerce is not a dedicated workstream, discussions on trade and investment could provide scope for dialogue on practical matters such as product traceability, seller verification and customs information. Ultimately, the challenge is not simply how to regulate Chinese platforms, but how to preserve an open and fair market as cross-border commercial networks become increasingly integrated.