As of: March 5, 2024, 6:01 p.m
By: Lars-Eric Nievelstein
Comments
Press
Split
Low-cost retailers such as Temu, SHEIN and AliExpress are expanding in Europe.
This sometimes means massive disadvantages for national companies.
The federal government is going into attack mode.
Berlin – “Shop like a billionaire,” is what the Chinese sales app “Temu” entices its customers to do.
It's no secret that there is a catch: In the past, there has been frequent criticism of quality deficiencies, delivery problems and customer service that is difficult to reach.
Both Temu and its competitors SHEIN and AliExpress come from China and use all sorts of tricks to gain competitive advantages.
The federal government now has a few approaches to stop this.
More market surveillance against cheap Chinese products?
Temu, SHEIN and AliExpress are essentially Chinese versions of Amazon with different focuses.
SHEIN, for example, specializes in fashion, while shoppers at Temu can find everything from toys to electronics.
What the three companies have in common is their rapid growth and aggressive approach.
CDU Bundestag member Michael Meister recently wanted to know how the federal government is positioning itself in this regard.
Close-up of a smartphone with Temu shop logo.
Chinese low-cost suppliers bring massive disadvantages for local retailers.
Now the federal government is waking up – and going into attack mode.
© IMAGO / NurPhoto / Nikos Pekiaridis
In a letter to Meister, from which
Wirtschaftswoche
quotes, State Secretary for Economic Affairs Udo Philipp said that Temu does not care much about legal requirements.
As evidence, he cited a test purchase by the Federal Network Agency for electronic goods, carried out at Temu.
“In almost all cases, these showed that the legal requirements were not met,” the letter said.
Philipp further wrote: “It must be ensured that all traders adhere to the regulatory requirements.” Now the federal government wants to achieve stricter market surveillance and a reform of customs procedures.
Meister himself calls for comprehensive controls on imported goods.
Chinese cheap retailers under the microscope – no shortage of goods in short supply
The shipped products themselves are therefore the first major problem that Temu, SHEIN and AliExpress pose to the German economy.
Test purchases reveal defects again and again.
Most recently, the toy association "Toy Industries of Europe" noticed safety risks for children in 18 of 19 toys purchased from TEMU's shipping, and not a single product was compatible with EU guidelines.
Specifically, the commissioned laboratory had repeatedly discovered sharp edges and loose parts that could lead to cuts and suffocation.
Temu spoke out to Ippen.Media himself.
My news
Traffic light law on pensions: From 2028, employees will have significantly less net from the gross reading
1 hour ago
GDL paralyzes Germany with merciless strike announcements
1 hour ago
After Tesla attack: Car manufacturer has to suspend production for several daysread
“Mega pension increase” for pensioners in 2024: expert predicts good prospects
Ampel wants to think about a higher retirement age: read “We have to talk about longer working lives”.
Pension increase in summer 2024: Heil gives the first forecast for pensioners
On review portals, customers had also repeatedly complained about the poor quality of goods, shipments not received or simply incorrect products.
Some items of clothing arrived in the wrong colors and sizes.
A Temu test purchase from WDR contained goods that were damaged during transport, and in a SHEIN test purchase from Greenpeace, 15 percent of the products were contaminated with harmful substances.
According to WDR, electronic devices shipped from Temu often lack the CE marking, which shows that the product meets European requirements.
There is an increased risk of fire here.
If such a device catches fire and, for example, a friend's apartment burns down, the buyer himself is liable to legal action.
Temu removes itself from the conflict with a disclaimer - buyers would then have to clarify any problems directly with the (mostly Chinese) manufacturers.
How cheap traders from China circumvent customs duties
The second problem: The platform operators deliberately circumvent European customs and sales tax regulations.
Hardly any product is more expensive than 150 euros (the limit at which customs duties are due), and if it is, the providers “chunk up” the purchase prices.
This means that Chinese sellers always stay below the customs limit.
The consumer advice center had already warned potential customers about such online shops.
The EU Commission has already made suggestions as to how countries could prevent this.
“Among other things, she proposed abolishing the 150 duty-free limit and declaring online platforms “fictitious importers,” said Philipp, the State Secretary for Economic Affairs.
This is intended to eliminate circumvention risks such as the splitting of shipments.
The formation of opinions within the federal government on the proposals is still ongoing - details of implementation are not known.
Displacement on national markets
And the third problem concerns national companies.
The recent example of Primark showed how Chinese influence is having an impact here.
The group is already under pressure due to rising energy prices and declining purchasing sentiment, and the fast fashion retailer SHEIN is taking away its online business.
The local manufacturers, who adhere to German and European regulations, are at a disadvantage compared to Temu, Shein and Co. - the Chinese players circumvent the existing laws wherever there is an opportunity.
Volker Treier, head of foreign trade at the German Chamber of Commerce and Industry (DIHK), spoke of an “increasing problem for the German economy”.