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European Market2026

Chinese E-Commerce in Europe: From Traffic Dividend to Compliance Competition

Chinese E-Commerce in Europe: From Traffic Dividend to Compliance Competition

Europe remains one of the main destinations for Chinese cross-border e-commerce, but market logic is rapidly shifting towards greater regulatory control, customs reform and consumer protection.

Chinese cross-border e-commerce in Europe grew explosively in recent years, driven by platforms such as AliExpress, Shein, Temu and TikTok Shop. However, 2025–2026 marks an inflection point: Europe is becoming one of the most demanding regulatory environments in the world.

The EU customs reform has eliminated the VAT exemption for packages under €22 and reinforced product safety checks. The DMA and DSA impose new obligations on large platforms, including algorithmic transparency, prohibition of certain practices and liability for illegal content.

For Chinese sellers, this requires a deep transformation: EU tax registration (OSS/IOSS), CE compliance, higher compliance costs and adaptation to European consumer protection rules.

Companies that adapt successfully will gain a significant competitive advantage. Reputation, delivery reliability and regulatory conformity are becoming key differentiating factors in the European market.

Iberex Spain helps Chinese companies structure their legal and tax presence in the EU: VAT OSS/IOSS registration, company formation, distributor and platform contracts, and digital regulatory compliance. Contact us to optimise your European operations.