Pressure grows on Europe to act on Chinese import surge

Core Insights - The European Union is experiencing a significant increase in imports from China, particularly in the plug-in hybrid car sector and specialty products, raising concerns about potential market distortions and competition fairness [1][2][3]. Import Trends - Plug-in hybrid car imports doubled in the first half of 2025, with over 50% originating from China, while specialty products saw increases up to tenfold [1]. - Chinese exports to the EU grew by just over 14% in September, contrasting with a 27% decline in exports to the U.S. [6]. - E-commerce platforms like Alibaba's AliExpress and Shein have facilitated a surge in low-value goods imports from China, taking advantage of the EU's duty-free treatment for packages under 150 euros ($175) [7][8]. Industry Concerns - European businesses, particularly in the tyre and fashion sectors, express concerns over the influx of low-priced imports, which they believe undermines local competition [4][12]. - Industry leaders, including those from France and Italy, are advocating for the EU to take protective measures against Chinese imports to safeguard local jobs and businesses [4][14]. Regulatory Actions - The European Commission has opened 15 investigations and imposed duties on 18 products, primarily from China, but faces a backlog in addressing the rising import cases [2][18]. - There are calls for the EU to implement tariff quota systems and expedite the removal of the 150-euro de minimis threshold to better manage the influx of imports [20][21]. Economic Implications - The weakening yuan against the euro has made Chinese imports cheaper, contributing to the rising import volumes [16]. - The EU's trade measures are often seen as reactive rather than proactive, with industry leaders urging for more timely and effective actions to address market distortions caused by Chinese overcapacity [19].