Chinese Online Stores Are Growing Stronger. European Companies in Trouble

Chinese Online Stores Are Growing Stronger. European Companies in Trouble

European – including Polish – e-commerce platforms are warning about growing competition from Chinese sellers, who already account for 40 percent of the online market in the EU.

European e-commerce platforms are raising alarm about growing competition from Chinese sellers, who account for 40% of online transactions in the EU and the UK. Asian companies are accused of violating data protection laws, product safety and unfair competition practices.

Ignacy Niemczycki, Deputy Minister of Development and Technology, notes: “We see the problem and we see that the existing regulations are sufficient, but the problem is their enforcement. We are working on the effective implementation of the existing European regulations.” This indicates the need to increase efforts in the field of supervision and enforcement to ensure equal conditions of competition for all players on the market.

Chinese stores benefit from numerous government subsidies, which allow them to lower product prices, putting European sellers in a difficult situation. Witold Chomiczewski, legal adviser, points to the problem: “Entities outside the EU that do not comply with EU regulations do not incur these costs. This allows them to offer their products cheaper, while maintaining a higher margin level.” This phenomenon means that European companies are unable to compete on price, which significantly affects their operations.

Marta MikliszaƄska from the Allegro Group appeals to regulators: “As European and Polish entities, we are not afraid of competition, but we appeal to regulators to ensure good enforcement of the regulations that should apply to all players on the market.” This indicates the need for more effective action by supervisory authorities to ensure equal opportunities for all companies.

Despite EU regulatory actions, Chinese companies still have a competitive advantage. Experts emphasize that it is crucial to enforce existing regulations and equip supervisory bodies with appropriate financial and organizational resources. In this way, it will be possible to eliminate the advantage enjoyed by Chinese exporters, who benefit from lower production costs and support from their government.

European online stores are still struggling to maintain a level playing field. It is crucial that the EU focuses on effective implementation and enforcement of the rules, which will allow European companies to operate better in the market and compete fairly with Chinese companies.

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