EU Conducts Surprise Inspection at Temu's European Headquarters, Linked to Surge in Chinese Goods

The EU Conducts Surprise Inspection at Temu's European Headquarters, Investigating Surge in Chinese Imports

The EU has further intensified its regulatory scrutiny of the Chinese e-commerce platform Temu. Multiple sources confirmed to AFP and Reuters that the European Commission conducted a surprise inspection at Temu's European headquarters in Dublin last week.

According to AFP and Reuters, an EU Commission spokesperson confirmed on Wednesday, December 10: "The European Commission carried out an unannounced on-site inspection of a company operating in the EU e-commerce sector based on the Foreign Subsidies Regulation." The Commission did not reveal the company's name or location, but insiders and multiple media outlets have confirmed that the target of the inspection was Temu.

This enforcement action is based on the EU's 2023 Foreign Subsidies Regulation (FSR), aimed at curbing competitive distortions caused by government subsidies for non-EU companies in the EU market. According to the regulation, if found guilty, a company could face a penalty of up to 10% of its annual global turnover.

According to Reuters' information, the EU typically conducts surprise inspections only after gathering sufficient evidence, which may come from internal investigations or whistleblowers. After a surprise inspection, companies may choose to cooperate with regulators or make concessions to mitigate potential penalties.

Temu has yet to respond to the surprise inspection.

Surge in Chinese Exports as a Background Factor

Analysts point out that the investigation is also linked to changes in Sino-EU trade structures. As U.S.-China trade barriers increase, China has shifted its export focus to other markets. Reuters reported that China's trade surplus exceeded $1 trillion for the first time in November, with a large volume of goods flowing into Europe, Australia, and Southeast Asia, further deepening the EU's concerns about the impact of Chinese products on local markets.

As the EU continues to "tighten" regulations on digital oversight and trade fairness, the legal and market environment facing Temu is rapidly tightening. This surprise inspection may signal an important shift toward more comprehensive regulation of cross-border e-commerce platforms in the EU.

Source: rfi

Original: toutiao.com/article/1851167624438795/

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