Chinese E-Commerce Giants Face Dual Regulatory Pressure from China and EU

Chinese e-commerce platforms Temu, Shein, and AliExpress face dual regulatory pressure starting July 1, 2026, with a new packaging law in China and a customs tariff in the European Union. The Chinese standard, enforced by the State Post Bureau, limits non-reusable packaging for non-fragile items to fewer than two layers, caps adhesive tape width at 45 mm, and mandates strict volume-to-goods proportion Source: eldiado. This directly impacts the supply chain of cross-border e-commerce giants.

Concurrently, the EU's new Packaging and Packaging Waste Regulation, effective August 2026, sets binding sustainability requirements including limiting empty space, using recyclable materials, and full traceability. It also shifts financial responsibility for waste management to digital platforms if manufacturers fail to pay recycling fees Source: infobae. The EU's scrutiny follows a March visit by European Parliament members to China to inspect compliance.

The regulatory alignment coincides with broader trade tensions between China and the EU, as the bloc seeks to protect its domestic market from the surge of small parcels—4.6 billion in 2024, with 91% from China. Both regulations aim to reduce packaging waste but impose significant compliance costs on Chinese e-commerce firms.