China’s Ministry of Foreign Affairs spokesperson Mao Ning told a press conference on 21 May that “China believes the creation of an open and inclusive trade environment is in the common interest of all parties,” according to the South China Morning Post.
The news publication also quotes her as saying: “We hope that the European side will abide by its commitment to openness and provide a fair, transparent and non-discriminatory business environment for Chinese companies.”
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The comments follow the EU proposing a €2 fee on all small parcels, which means packages worth less than €150 ($169.46) would no longer be customs-free.
According to the European Commission, many of these goods did not comply with European standards and posed a risk to European sellers who maintain high product standards and contribute negatively to environmental and climate concerns.
Neither Shein nor Temu had responded to Just Style’s request for comment at the time of going to press.
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By GlobalDataHowever, GlobalData head of apparel Chloe Collins told Just Style exclusively: “Shein and Temu will lose some of their competitive advantage if Europe does introduce small parcel fees.”
She added: “Shein has already confirmed in the US after its own de minimis exemption was scrapped that they would not be passing these costs onto consumers upon delivery, but price rises on its website will be inevitable as the retailers will already have thin margins.
“It’s likely that Shein and Temu will still probably remain cheaper than most other brands considering their base prices are ultra low, but the gap will narrow, so this would present an opportunity for local European brands to steal back some spend where they can offer better quality and also have stores through which they can connect with consumers.”
Shein responded to the European Commission and EU’s actions for safe and sustainable e-commerce imports by stating at the time that it “welcomes efforts that enhance trust and safety for European consumers when shopping online, and believe that a level competitive playing field can benefit the entire ecosystem”.
Shein also explained that its regulatory and compliance teams across the EU would engage its partners at EU and national government-level to study the recommendations and examine how Shein could play its part in strengthening the industry to enhance the online shopping experience for European consumers.
The EU’s measures, which were announced in February, formed a segment of the European Commission’s E-Commerce Communication, titled ‘A Comprehensive EU Toolbox for Safe and Sustainable E-commerce.‘
Customs reforms were included on this agenda with an appeal for rapid adoption of the proposed Customs Union Reform Package by co-legislators. This included swiftly enacting new regulations, eliminating the exemption from duties for parcels valued under €150, and enhancing control capabilities through improved data exchange and risk analysis.
