(C) South China Morning Post

The European Union (EU) is significantly stepping up its enforcement efforts against goods entering the bloc through Chinese e-commerce platforms like Shein and Alibaba, citing a massive surge in the inflow of potentially hazardous products.

Michael McGrath, the EU Commissioner for Democracy, Justice, and the Rule of Law, announced the stricter enforcement policy in an interview with the Financial Times on December 13th (local time), stating, "There has been a sharp increase in dangerous products being shipped directly from China to the homes of European consumers."

The Surge of Dangerous Goods

Concerns about safety primarily revolve around Chinese-made items such as cosmetics and toys. Commissioner McGrath pointed out that products with serious safety defects—potentially causing fatal harm to users—are making their way into the EU. However, due to the extreme workload and strain on enforcement personnel, only a tiny fraction of these hazardous goods are currently being intercepted.

To address this critical gap, the EU is moving to amend regulations, granting the European Commission—the EU's executive arm—direct intervention authority. This shift aims to alleviate the burden currently falling on individual member states' authorities.

McGrath explained that the current consumer protection and market surveillance regulations are simply not robust enough to prevent dangerous Chinese products from entering the EU market. Under the current system, when hazardous goods are discovered, e-commerce platforms like Shein typically limit their response to merely delisting the product from their sales catalogue.

"We need a much stronger deterrent," the Commissioner emphasized, indicating that the new measures are intended to raise the leverage and accountability of platforms like Shein and Alibaba.

Enforcement and Financial Measures

The EU Commission has already initiated an investigation into Shein on suspicion of selling illegal items, including adult dolls resembling children. Depending on the outcome of this investigation, the platform could face substantial fines. Furthermore, France has temporarily suspended the operation of Shein's website within its borders due to the advertisement of problematic products.

In a separate but related move, the EU has agreed to abolish the current VAT exemption for low-value parcels priced under €150 (approximately $164 USD). This tax loophole has long been exploited by platforms selling cheap, high-volume goods.

As a precursor to a full tariff imposition, the EU plans to introduce a €3 fee per product type on low-value parcels, beginning in July 2026. This move aligns with similar actions taken elsewhere to protect domestic markets and ensure fair trade practices.

The decision to strengthen regulations mirrors steps previously taken by the US. The former Donald Trump administration abolished the duty-free exemption for parcels under $800, implementing tariffs based on the country of origin. According to administration officials, this change resulted in a significant drop in small-value parcels shipped from China and Hong Kong, from an average of four million per day down to one million.

The new measures underscore the EU's commitment to prioritizing consumer safety and ensuring that foreign e-commerce giants comply with European standards, thereby fostering a level playing field for domestic businesses. The Commission aims to establish a regulatory framework that holds platforms directly accountable for the safety and legality of the products they sell to European citizens.