German Government's Action Plan Targeting Chinese Retailers Temu and Shein

Tightening Control over Temu and Shein: A Response to Unsafe ... Customs Controls

The Federal Ministry of Economic Affairs is taking action against Temu and Shein, who deliver products with inadequate safety standards and evade customs controls. The SPD parliamentary group is calling for an expansion of customs controls and the abolition of the 150-euro customs exemption limit. Shein has hired former EU Commissioner Günther Oettinger as an advisor. Around 400,000 products from Temu and Shein alone arrive on the German market daily. The government is planning an 'E-Commerce Action Plan' to enforce product safety, environmental protection, consumer protection, and customs and tax laws. 43% of consumers use Temu and Shein, but there is criticism of product quality, lack of controls, manipulative incentives, unfair competition, and the 150-euro customs exemption limit. Shein's CEO, Donald Tang, defends the company, highlighting their 400,000 product tests and customer focus. The Ministry of Economic Affairs is in discussions with the federal states, the EU Commission, and the EU Parliament to ensure fair competition conditions for all market participants. Shein intends to work proactively with authorities and is open to reforms regarding customs exemption. They also plan to provide more transparency to German customs about the content of their packages. Shein faces allegations of systematic customs tricks, a catastrophic environmental record, and plagiarism and forced labor. Tang explains that their low prices are due to demand-oriented production and limited overproduction. Online retailers, such as Temu, are facing complaints from the trade industry regarding unfair competition and the lack of control over packages from China.