China has urged the European Union to uphold its commitment to fair trade practices amid reports that the EU plans to impose a flat €2 ($2.27) fee on small parcels entering the bloc—primarily shipments from China. The move, described by EU Trade Commissioner Maroš Šefčovič as a response to an overwhelming surge of imported packages, is drawing criticism from Beijing, which sees it as a discriminatory measure against Chinese businesses.
Chinese Foreign Ministry spokesperson Mao Ning emphasized that international trade should remain open and inclusive, stating, “We hope the EU will honor its commitment to openness and provide a fair and transparent business environment for Chinese enterprises.”
The fee, outlined in an EU Commission draft proposal, aims to offset costs associated with the estimated 4.6 billion items imported into the EU annually. Under the new structure, direct-to-consumer shipments would be taxed at €2 per package, while goods sent to warehouses would face a €0.50 fee.
China fears that such tariffs could disrupt supply chains and add economic pressure. Zhou Mi, a senior researcher at the Chinese Academy of International Trade, warned that imposing fees on low-value packages contradicts global trade norms. “It raises customs costs, burdens lower-income consumers, and risks harming cross-border trade,” he told Global Times.
China’s concerns come at a time when the United States recently reduced tariffs on Chinese small parcels from 120% to 54%, signaling a more open trade approach. Observers note that if the EU proceeds with its plan, it may strain global trade further and compound economic uncertainty.
Beyond the EU, G7 nations—including the U.S., Canada, the UK, Germany, and Japan—are reportedly considering tariffs on Chinese low-value exports, citing concerns over market competition and industrial overcapacity. Canadian Finance Minister François-Philippe Champagne confirmed that G7 finance chiefs are discussing coordinated action against China’s economic practices.
Japan is also reviewing exemptions for small-package imports, claiming concerns about counterfeit goods and illicit trade. Meanwhile, U.S. Treasury Secretary Scott Bessent is pressuring G7 allies to take a firmer stance against China’s export-driven economy, arguing that excess manufacturing capacity is flooding global markets with cheap goods.
Despite mounting tensions, analysts believe China-EU trade cooperation still has potential. Bao Jianyun, an economics professor at Renmin University of China, noted that while the G7 debates stricter measures, internal conflicts—such as U.S. reciprocal tariffs on its own allies—make it unlikely that a unified approach will be reached soon.
Recent investment trends also signal resilience. Chinese foreign direct investment in Europe rose by 47% in 2024, reaching €10 billion, its first increase in seven years. As economic stakes grow, China continues to advocate for negotiation over confrontation, urging the EU to reconsider its trade strategies to prevent further market disruptions.
