Temu and Shein: Habeck targets Chinese low cost platforms | EUROtoday

A gown for 5 euros, a smartwatch for eleven euros: Chinese on-line retailers Shein and Temu lure prospects in Europe to their platforms with discount costs. The high quality of the merchandise is commonly questionable and even dangerous to well being. And with video games, wheels of fortune and low cost countdowns, Temu regularly urges its prospects to make new purchases.

This might quickly be over: Federal Minister of Economics Robert Habeck (Greens) desires to pay extra consideration to Temu and Shein. A spokesman confirmed that an “e-commerce action plan” is being drawn up. The enterprise journal “Capital” had beforehand reported on this.

“It is crucial that existing legal regulations are enforced just as consistently against traders from third countries as against traders from the EU,” a spokeswoman for the ministry instructed “Capital”. This applies to the present requirements for product security, environmental safety and client safety in addition to customs and tax legislation. The ministry is due to this fact analyzing new measures and the difference of present laws. Further particulars of the plan will not be but recognized.

Green State Secretary met representatives of Temu and Shein

According to “Capital”, there have already been talks with the federal states in addition to the EU Commission and the EU Parliament in latest months. State Secretary Sven Giegold (Greens) has reportedly met with representatives of Temu and Shein. The intention of the efforts is to “ensure fair competitive conditions for all market participants”.

Shein and Temu are very fashionable in Germany. 43 p.c of customers purchase from the marketplaces, in accordance with a lately revealed survey by the Cologne-based commerce analysis institute IFH. But along with the poor product high quality, lack of controls and manipulative buy incentives, the platforms don’t play by the identical guidelines as their rivals in one other respect.

The suppliers make in depth use of authorized loopholes such because the 150 euro customs exemption restrict. The Asian platforms primarily ship by air freight. For orders from non-EU nations, no import charges should be paid for packages with a items worth of lower than 150 euros.

Shein rejects criticism

Shein has at all times rejected criticism of its enterprise practices. “Our business model is not based on tariff advantages,” mentioned Shein boss Donald Tang in an interview with Handelsblatt. If the customs legislation modifications, they are going to implement it.

Tang additionally refuted the accusation that many shipments had been incorrectly declared in an effort to adjust to the 150 euro restrict. The firm is engaged on offering customs authorities with the required info earlier than the packages arrive on the airport. “If the authorities want us to do that, we would do it. We want to solve the problem proactively.”

Regarding criticism of product high quality, Tang mentioned: “This is an image problem. There is an old saying: if something is cheap, it can't be good. We are changing that.” Asked about allegedly poor working situations and low requirements, he mentioned: “We are aware of these concerns and we are tackling these issues one by one. But I would like to stress that many of these allegations are not true.” Tests have been carried out to make sure that the merchandise adjust to the laws.

Shein signaled help for the economics minister's plans. “We are determined to comply with German and European laws and support all efforts that create fair competitive conditions that benefit consumers,” a Shein spokeswoman mentioned when requested in regards to the motion plan. Temu didn’t reply to a request from the dpa information company.