Dear friends, good day to you all!
Temu didn’t conquer Europe because it’s better. Temu and other Chinese e-commerce platforms, such as Shein, AliExpress, and others, defeated Europe because Europe became more expensive, slower, and less competitive.
This fact lies “behind” the European Union’s decision to impose a 3-euro fee, effective July 1, on low-value products imported via e-commerce platforms from third countries. In practice, every purchase from platforms such as Temu, Shein, or AliExpress will incur an additional cost that could turn a cheap order into a far from cheap affair.
Europe argues that this is a measure to restore fair competition. It claims that Chinese platforms take advantage of unfair competitive conditions, low production costs, state subsidies, and practices that often border on dumping. This is a valid argument.
If Chinese companies, however, can sell at lower prices than European ones, what is the real problem? Are the Chinese prices too low, or is it the Europeans’ inability to compete with them?
The European Union’s current response is revealing. Instead of addressing the root causes, it chooses to limit the consequences. Instead of reducing production costs, it is raising import costs. Instead of boosting the competitiveness of European companies, it is making their competitors more expensive.
For decades, the European Union has taught the rest of the world that competition makes economies stronger. That the free market rewards innovation, efficiency, and productivity. That trade barriers ultimately harm consumers.
Today, with competition coming from China, Europe itself is seeking protection behind tariff walls. This is a glaring admission of defeat.
The irony of this situation becomes even greater when one considers that Europe is now adopting the same approach chosen by Washington: tariffs, duties, restrictions, and trade barriers. These are precisely the tools that Brussels has for years criticized as signs of economic weakness and political protectionism.
The reality is that Temu is not Europe’s problem. It is a symptom of it.
High energy costs, excessive bureaucracy, the complexity of regulations, slow decision-making, low productivity, and the gradual weakening of Europe’s industrial base all combine to create an environment in which Europe is finding it increasingly difficult to compete with the world’s major economies.
It is no coincidence that most major digital platforms are created in the United States or Asia. It is no coincidence that industrial production is moving outside Europe’s borders. It is no coincidence that more and more European consumers are seeking out cheaper options on Chinese platforms.
Temu and other platforms are not merely capitalizing on China’s low costs. Above all, they are capitalizing on Europe’s mistakes.
And there is yet another aspect that is hard to ignore. The decision comes at a time when rising prices continue to put pressure on millions of European households. For many consumers, these platforms are not a luxury. They are a way to keep their daily living costs down.
Europe seeks to protect its businesses. That is perfectly legitimate. But protection is not the same thing as competitiveness. Tariffs may make Temu more expensive. But they cannot make Europe stronger. And when an economy needs protection to face competition, the problem lies not only outside its borders. It lies primarily within them.
Temu is not Europe’s failure. It is its mirror.