China Economic Review
Charting China’s changing economic terrain · Since 1990

A united front

July 23, 2026

Beijing is pushing back against the EU for imposing several fines ranging in the tens to hundreds of millions of Euros on Chinese e-commerce giants, including AliExpress, Temu and Shein in relation to failing to stop the sale of illegal and counterfeit goods on their platforms, among other things. China’s Ministry of Commerce accused the bloc of discriminatory trade barriers, and threatened potential retaliation as trade tensions between the two sides escalate.

For years, Europe has been seemingly trying its best to avoid a confrontation with China over its trade practices while its trade surplus with the EU continues to balloon. Recently though, Brussels has been increasingly pushing back on a range of issues, from the wave of cheap Chinese vehicles entering the European market and out-competing local brands—apparently backed by strong subsidies and state support—to the ethically questionable business models of the e-commerce and fast fashion platforms. 

Much of this seems to be the result of a divide-and-rule strategy by Beijing, playing one member state off against the others. There may well be individuals who have benefited from facilitating the process in the short term, but the nightmarish implications for Europe’s economy are becoming ever more evident. A logical approach on the EU side is a united front and a common position on dealing with China. There could well be short term repercussions from a robust position, but ultimately the EU needs to make a decision on where it stands.

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