Germany Tightens Regulations on Chinese Discount Retailers

Germany is drafting new regulations to ensure Chinese discount retailers like Temu and Shein comply with EU standards for product safety, environmental protection, consumer rights, customs, and tax laws. The country’s main retail association has pushed for these changes, highlighting the need for fair competition. The Economy Ministry is developing an e-commerce action plan and considering new measures to tighten enforcement.

Germany is formulating new regulations to ensure Chinese discount retailers such as Temu and Shein meet EU standards for product safety, environmental protection, and consumer rights, Capital magazine has reported.

The country's main retail association, HDE, has been lobbying the government for fair competition, citing the lack of customs capacity to ensure compliance with EU rules. An economy ministry spokesperson emphasized the need for strict enforcement of existing regulations for both third-country and EU retailers.

The Economy Ministry is drafting an e-commerce action plan and evaluating new measures, having held talks on the issue with federal states, the European Commission, and the European Parliament. State Secretary Sven Giegold met with representatives from Temu and Shein in June to discuss the matter. Germany's Social Democrats have called for increased customs controls and the removal of the €150 duty-free limit. The current EU regulations allow packages under this value to avoid customs checks, creating concerns about unfair competition.

(With inputs from agencies.)