Chinese online platforms threaten Austria's trade with tax tricks and flood us with toxic chemicals – 4-point plan for fair and environmentally friendly trade.

Online platforms like Temu, Shein, and AliExpress are overrunning European retail with aggressive marketing and dumping prices – at the expense of consumers, the environment, and fair-trade retailers. Greenpeace and the trade association are sounding the alarm and presenting four key demands for fairness in digital commerce and environmental protection.

Rainer Will, Managing Director of the Austrian Trade Association, said: "Far Eastern platforms like Temu, Shein, and AliExpress represent a generation of online retailers who are profiting from the lack of EU law enforcement at the expense of domestic consumers, retailers, and the environment. This unfair competition catapulted Temu to fourth place and Shein to ninth among the top-grossing online shops in Austria, leaving hundreds of thousands of people suffering—through loss of wealth and jobs, as well as negative environmental and health consequences."

Ursula Bittner, economic expert at Greenpeace: "Shein and Temu are flooding Europe with cheap products that often contain dangerous chemicals. This business model not only poses a safety risk to consumers' health, but is also based on unfair working conditions and endangers the environment. This is an ecological and social scandal."

Market power grows rapidly: Temu & Shein already among the top 10 online shops in Austria

According to the market research institute NielsenIQ, Temu and Shein are already among the ten highest-grossing online shops in Austria. In 2024, Temu reached fourth place, Shein ninth. There's no end in sight to this growth – on the contrary, the US tariff dispute with China will result in massive trade diversions to Europe this year. Unlike traditional retail, these platforms rely on direct shipping from China, usually via climate-damaging air freight, without assuming responsibility for product safety, taxes, or environmental standards.

According to NIQ figures, Far Eastern players generate more than half of their revenue in the clothing, household goods, and electronics segments. Last year, a quarter of all Austrians ordered at least once from Temu, 16% from Shein, and 5% from AliExpress. The €150 customs duty-free threshold is being systematically abused – to the detriment of domestic retail (€4.5 billion in lost sales), inner cities (15 percent vacancy), and the public sector (€750 million in lost VAT).

Therefore, Greenpeace and the trade association are presenting a 4-point plan:

Reduction of the 150-euro duty-free limit to 0 euros
In 2024, 4.6 billion parcels containing goods worth less than €150 were delivered from the Far East to Europe. According to the EU Commission, two-thirds of these were falsely declared. 91 percent originated in China. Fraudsters systematically evade customs duties and taxes, for example, by making partial deliveries. The damage to Austrian trade amounts to €4.5 billion. City centers suffer from vacancies, and municipalities lose millions in tax revenue.

More resources for customs authorities and strict import controls

Products from Temu, Shein, and AliExpress often contain banned chemicals, including dangerous perishable chemicals (PFAS) – sometimes far above legal limits. The complaint rate for toys is as high as 100% of test purchases. Nevertheless, due to inadequate controls, such products enter the market unhindered. The enormous volume of cheap goods from Asia is overwhelming the existing control capacities of national customs authorities – these must be strengthened.

Introduction of a parcel levy on B2C shipments from third-country platforms

With approximately 4.6 billion parcels arriving annually from the Far East, not only is the flood of waste growing, but so is CO₂ emissions from climate-damaging transport routes, mostly by air freight. Greenpeace and the German Retail Association are calling for the introduction of a parcel handling fee on B2C shipments from third countries. This measure is intended to help combat tax fraud, account for environmental costs, and ensure greater fairness in trade.

Temporary ban in case of repeated violation of the law

Far Eastern platforms frequently circumvent EU regulations – usually without consequences. Repeated violations must lead to temporary platform bans. The inexpensive online products from Temu, Shein, and AliExpress sometimes have serious safety defects. Tests show that one Shein shoe contained 229 times more harmful plasticizers than permitted. According to AGES, 80 percent of the toys on Temu are defective – all of the swings are defective. According to the manufacturers' association, not a single toy in the test purchases made on Temu met EU regulations.

Rainer Will from the German Retail Association: "The seemingly cheap procurement of goods via Far Eastern platforms such as Temu, Shein, and AliExpress ultimately costs us dearly. Millions of misdeclared packages deprive cities and municipalities of important local tax revenues – fewer local jobs mean less tax revenue. The flood of waste endangers not only our planet but also our city centers. The stricter controls announced by the German government are an important step. Further measures are necessary – a third major distribution center for dumped packages in Europe is about to open, and time is running out."

Ursula Bittner of Greenpeace adds: "Temu and Shein represent a trade logic that wastes resources, pollutes the air, and floods our markets with environmentally harmful cheap goods. We can no longer afford this type of trade. Climate and environmental protection must be taken seriously – including in digital commerce."