20-year-old Chloe Cheung is a democracy activist from Hong Kong and lives in exile. She and her family had to leave their home country in 2020 for safety reasons after her name was recorded by the police during a demonstration. She now lives in the UK, but she can’t rest.
The Hong Kong authorities have put a bounty of one million Hong Kong dollars on the young woman’s head, she is also receiving threats on social media and feels threatened. Cheung criticizes the British authorities, who initially only gave her a brochure with self-protection measures and an emergency telephone number after she requested help. In an interview with Fabian Peltsch, Cheung explains how she wants the UK to deal with China and what her plans are for the future.
What makes Temu and Shein products stand out is their extremely low prices. Ordering for up to USD 800 was the “limit” until recently – thanks to the “de minimis” rule, this amount was previously the threshold above which import duty was due in the USA. In the EU, it is EUR 150. Donald Trump had only just repealed the de minimis rule when import tariffs were imposed on all goods from China and then USPS suspended the transportation of Chinese packages altogether.
In today’s Feature, Marcel Grzanna describes what the blows mean for China’s e-commerce giants and what reaction the EU is planning to the cheap packages.
I wish you a good read.
The Hong Kong authorities have put a bounty of 1 million Hong Kong dollars (about EUR 116,500) on your head. You are the latest activist outside Hong Kong to be targeted in this way. What led to this?
I got involved in the pro-democracy movement at the age of 14 and took part in the protests in 2019. During one of the demonstrations, my name was recorded by the police, which directly put me in danger. After the introduction of the National Security Law, my family and I no longer felt safe in Hong Kong. So we made the difficult decision to flee to the UK in August 2020. The bounty was then suspended partly due to social media posts related to my work with the Committee for Freedom in Hong Kong Foundation, which I had started in exile.
How did you react when you found out that there was suddenly a bounty on your head?
When I saw the news, I was completely shocked. Friends, colleagues and family members contacted me, asking what had happened. I didn’t even know how to explain it to them, because what I am doing is not a crime. I am just standing up for Hong Kong and speaking the truth about what is happening there.
What exactly are you accused of?
I am accused of two crimes: inciting secession and collaborating with foreign forces. Basically, this means that even speaking to foreign politicians or media outlets like yours is considered a crime by the Hong Kong authorities. These accusations are purely politically motivated and are meant to silence activists like me.
Under the National Security Law, the situation in Hong Kong has worsened massively. You can now be arrested simply for wearing a T-shirt with a political message or holding up a flag with a protest slogan.
How has the bounty affected your life so far?
One of the most painful consequences is that many of my friends and family members in Hong Kong have cut off contact with me. They fear that just being connected to someone with a bounty on their head could put them in danger themselves. It’s incredibly frustrating and isolating, but I understand their fear.
I have also received threats on social media. Some are even calling for the government to increase the bounty to create even more incentives for my kidnapping. It is frightening to know that there are people who mean such threats seriously.
I also have the suspicion that I am being followed. The feeling of being constantly watched is extremely unsettling. Although I am in the UK, the risks and pressure from the Chinese government seem to follow me everywhere.
Does this mean that you do not feel sufficiently protected in the UK?
When I first heard about the bounty, the Metropolitan Police contacted me. They said they were aware of the situation from the media reports. There is a protocol for such situations. They gave me a leaflet with self-protection measures and an emergency phone number. If anything happened, they told me to call 999. I found this support unsatisfactory – a pamphlet and a phone number don’t solve the real dangers I face.
After speaking to media outlets such as The Times and The Telegraph, the Metropolitan Police contacted me again, visited me at home, and carried out a risk assessment. I appreciated this action, but it also made me realize that without the media attention, they may not have acted at all. My case received special attention because of my age and personal history – but many other Hong Kong activists don’t get this support.
What are you most afraid of?
There are worrying incidents that illustrate what I am afraid of. One example is the incident in Manchester where staff at the Chinese embassy tried to drag a protester into the consulate building. Fortunately, the British police intervened and were able to free him. But what if they had not intervened? The protester could have disappeared and no one would have known what had happened to him.
In addition, there are hardly any consequences for such repression. If Chinese students attack Hong Kong protesters, they may be arrested but not charged. This sends a dangerous message: That people with links to the Chinese Communist Party – or even Chinese nationals in general – can do what they like in the UK without fear of serious punishment. This lack of accountability is extremely worrying.
What would you like to see from the government?
First, the British government should do more than just offer a visa program for Hong Kongers. The ability to enter the country was an important first step, but the key question is: How will we be protected once we are here? Many of us continue to experience repression in the UK – be it through the influence of the Chinese government, Chinese students, members of the Chinese community, or even spies.
Should the UK also impose sanctions?
I don’t think it’s about breaking off relations with China. Dialogue is important and it is essential to talk to China. But it must not be about simply doing everything China demands. It’s about finding a way to negotiate on an equal footing and setting our own terms. We must ensure that the Chinese government does not have full control and that we do not simply accept their demands without standing up for our own values and rights.
What are your plans for the future?
At the moment I’m doing a gap year. The bounty has made many aspects of my life more difficult. For example, it might be more difficult for me to apply to university in the future. Many UK universities receive significant funding from China and we know that this influence can affect what is taught. Some professors avoid speaking critically about the Chinese Communist Party for fear of upsetting Chinese students and losing funding opportunities.
My career prospects are also affected. A friend of mine who works in banking told me that banks are reluctant to hire people who are too political. The reality is that the risks I now face are with me everywhere I go – they affect both my education and my career prospects. I never thought activism would become my main job in life, but with the bounty, I may have to advocate for Hong Kong in this way for the rest of my life.
Chloe Cheung grew up in Hong Kong and became involved in the pro-democracy movement at an early age. In 2020, at the age of 15, she went into exile in the UK. In December 2024, the authorities in Hong Kong issued a warrant for her arrest. She is accused of calling for secession while in exile and collaborating with foreign forces. A reward of one million Hong Kong dollars was also offered for her capture.
The current week has seen major setbacks for Chinese online providers of low-cost products. In both Europe and the USA, the business models of Shein, Temu, and AliExpress suffered a shot across the bow. The EU Commission decided to introduce a handling fee on parcels from suppliers entering the European Union, while the USA stopped the “de minimis” regulation and thus plugged a duty-free loophole for deliveries worth less than 800 US dollars.
The conclusion is simple: European and American consumers who want to shop on the platforms in the future will have to pay extra in most cases. It is still unclear how high the bill will be. Nevertheless, a slump in sales seems inevitable for Chinese companies. After all, with their unrivaled low-cost offers, the platforms have for years mainly won over those consumers who were simply not prepared to pay more than Temu and Co. had previously demanded. In view of the quality deficits of many of the products sold, it is questionable how much more they are willing to pay.
New rules here and there not only directly harm companies but also mean more bad news for the Chinese economy. E-commerce is one of the key pillars that should keep the country on a stable growth path. A slump in sales amounting to several billion euros is also hurting the second-largest economy.
According to the EU Commission, 91% of all e-commerce imports with a value of up to EUR 150 came from China last year. This means that the volume has more than doubled since 2023 – from 1.9 billion to 4.17 billion shipments. The growing popularity of the supposed bargain portals is also reflected in the app stores. With almost 545 million downloads in 2024, Temu topped the list in e-commerce. Shein followed in second place with around 235 million downloads.
The catch is that the goods are often inferior or counterfeit. Temu’s advertising campaigns for supposed top deals include, for example, tablets for well under EUR 100 that are supposed to do everything but turn out to be electronic waste after a short time, as many users complain. Or soccer shirts from German and European professional clubs for EUR 20 – every soccer fan knows that this money for licensed products from a club is hardly enough to buy a single sock, let alone a jersey. So where do such products come from, if not from counterfeiting workshops?
EU Consumer Commissioner Michael McGrath emphasized the urgency of only allowing safe products to enter the internal market. “Consumer rights” are to be protected. This will only succeed to a limited extent, as quality standards can only be guaranteed on a random basis. But the signal will get through to manufacturers. However, the European Parliament and EU member states still have to give the green light to the plans for fees.
However, it is also true that the EU customs authorities are simply overwhelmed by the volume of parcels. A patchwork of 27 national customs authorities, whose processes are not sufficiently harmonized, have facilitated the flood of shipments from China.
The German economy welcomed the planned fee “The same rules must finally apply to all market participants in the European single market,” said Stephan Tromp, Deputy Managing Director of the German Retail Association (HDE). Providers such as Temu and Shein should no longer be allowed to get away with breaking the rules. The German Chamber of Industry and Commerce (DIHK) expressed a similar view. It is not about preventing international trade, but about creating a level playing field. German retailers would bear high tax burdens and strict requirements, while foreign suppliers exploited loopholes.
However, there was also comparatively good news for the Chinese online giants. The postal service provider USPS announced that it would continue to transport packages from China and Hong Kong after all. The day before, the agency had temporarily suspended the service after additional tariffs of ten percent on all goods from China came into force on Tuesday. USPS and Customs and Border Protection are working closely together to implement the new tariffs, it said in a statement.
Nevertheless, the suspension of transportation was probably the least of the suppliers’ problems. US President Donald Trump had previously ended the “de minimis” exemption from import duties. This previously allowed duty-free deliveries of low-value parcels from the People’s Republic to the United States.
This was a very generous exemption in the USA. The de minimis threshold in the EU is much stricter, at EUR 150. During Barack Obama’s presidency, the US Congress quadrupled the exemption from the previous USD 200. As a result, the number of imported parcels subject to this rule exploded. The number of shipments using the de minimis rule has increased by more than 600 percent over the past ten years. According to the Customs and Border Protection Agency, it amounted to more than one billion in 2023. The main beneficiaries were Chinese online providers.
The controversy is not just about the chronic deficit in US trade with China. It’s also about the synthetic opioid fentanyl, which killed nearly 75,000 people in 2023 alone. Reuters reporters found last year that they could easily import the raw materials for at least three million fentanyl tablets with a potential street value of three million dollars at a price of just over USD 3,600. The shippers managed to label the packages as electronic goods, for example.
Analysts at the major Japanese bank Nomura estimate that China exported goods worth USD 240 billion worldwide under de minimis regulations last year. This would correspond to seven percent of exports. The contribution to gross domestic product is estimated at 1.3 percent. The experts therefore forecast that the abolition of the US threshold would slow Chinese export growth by 1.3 percentage points and economic growth by 0.2 points.
Analysts assume that shipments from Temu and Shein to the USA will now become more expensive. However, it is not necessarily to be expected that this will dramatically reduce the number of shipments. Chinese online retailers are likely to be cheaper than US retail chains even under the new rules. Collaboration: Emily Kossak
China has lodged a complaint with the World Trade Organization (WTO) over the tariffs imposed by US President Donald Trump on Chinese goods, the Geneva-based organization announced on Wednesday. On Saturday, Trump had ordered tariffs on imports from Mexico, Canada, and China, demanding that these countries curb the flow of fentanyl – and in the case of Canada and Mexico, also illegal immigration. However, he later suspended the tariffs against the two North American nations.
China, which was hit with a 10% tariff on its exports to the US, had previously stated its intention to challenge the measure at the WTO. In a statement cited by the WTO, the Chinese government argued that the measures appear inconsistent with US obligations under the trade organization’s founding agreement. “China reserves the right to introduce additional measures and claims related to these matters during consultations and in any future request for the establishment of a panel,” the statement read.
WTO consultations typically lead to a dispute settlement process within weeks, during which experts assess whether the tariff increases comply with WTO regulations. This review can take several months. If the panel rules in China’s favor, Beijing would be authorized to impose retaliatory tariffs of equivalent magnitude. In fact, China has already responded by announcing tariffs on US energy exports: 15% on coal and liquefied natural gas, as well as 10% on crude oil, agricultural machinery, and certain vehicles.
China is planning to make it compulsory to obtain a license to broadcast micro-dramas in order to promote their “healthy and prosperous development”. The National Radio and Television Administration stated on Wednesday that all micro-short dramas must first obtain a license for the distribution of online dramas.
Micro-dramas, vertically shot, minute-long episodes with frequent plot twists, have become increasingly popular in China in recent years. With a value of five billion US dollars per year, some experts believe that short films are an increasingly dominant competitor for the Chinese film industry, which is the second largest in the world after Hollywood and is dominated by the state-owned China Film Group.
Between late 2022 and early 2023, the National Broadcasting Authority said it organized a “special rectification campaign”, during which it removed 25,300 micro-dramas with a total of almost 1.4 million episodes due to their “pornographic, bloody, violent, lowbrow, and vulgar content”. rtr
After a construction period of seven months, the Tesla Shanghai Megafactory will start series production next Tuesday, reports Car News China. Test production has been running since the end of 2024. In contrast to the Tesla Shanghai Gigafactory, the Megafactory will produce energy storage batteries, so-called megapacks. The factory is Tesla’s first energy storage project outside the United States. In the first year, 10,000 units are planned, which corresponds to a capacity of 40 GWh.
Energy storage systems are an important prerequisite for keeping the grids stable as the use of renewable energies increases. Storage systems connected to the electricity grid can absorb surplus electricity generated by wind or solar power plants, for example, and feed it back into the grid when needed. The industry is growing rapidly in China: According to figures from the National Energy Administration, installed capacity amounted to 168 GWh for 2024, a growth of 130% compared to the previous year.
The most important players in the industry currently include BYD, Star Charge, CATL, and GoodWe. CATL and BYD will act as battery cell suppliers for the Megafactory. A Tesla Megapack can store more than three MWh of energy, which is equivalent to the amount of energy needed to power 3,600 households in Shanghai for one hour. jul
China will maintain anti-dumping duties on imports of potato starch from the EU for a further five years. This was announced by the Ministry of Commerce on Wednesday. The duties have been in place since 2007 and were already adjusted once in 2011. The latest extension comes into force on Thursday, Feb. 6, 2025.
The duties apply to French company Roquette Freres, Dutch company Coöperatie Koninklijke Avebe (Royal Avebe) and German company Avebe Kartoffelstärkefabrik Prignitz/Wendland GmbH, among others. Potato starch is used in the food industry.
China has also launched trade investigations into some dairy and pork imports from the EU due to concerns about possible subsidies or dumping. The bloc had previously imposed tariffs on Chinese exports of electric vehicles. rtr
Since the summer of 2023, two defense ministers have been ousted one after the other in China, as well as a good dozen senior military and arms managers. None of them had such a long history with party leader Xi Jinping as Miao Hua. The 69-year-old belonged to the closest circle and was still far above the defense minister in the power hierarchy.
The connection goes back to the beginning of Xi’s career as governor of Fujian province from 1999 to 2002. Miao was born in Fujian in 1955 and joined the military at the age of 14. After holding positions as a political commissar, he rose to become political director of the 31st Army Group in 1999, which Xi frequently visited. The two are said to have known each other well at the time.
Miao’s rise began when Xi was appointed party leader in 2012. The military man was promoted to political commissar of the navy in 2014. The unusual switch from the army to the naval forces is considered typical of Xi. By placing his followers in positions unconventionally and bypassing established networks, he is extending his control.
In the navy, Miao was responsible for the promotion and selection of candidates. In 2017, Xi appointed the admiral to the Central Military Commission, the highest organ of power under him as commander-in-chief. As director of the political department, Miao was also responsible for promotions, organization, ideology and party discipline.
As positions in China’s military are often bought through benefits to those in charge or their family members, this position in particular usually offers plenty of opportunities for bribery. Miao’s predecessor in the post, General Zhang Yang, fell over allegations of corruption. He took his own life in 2017 during the investigation.
Nevertheless, Miao’s dismissal at the end of November came as a surprise. State media only reported after a delay, with the accusation being “violations of party discipline“, which in party parlance usually means corruption and lack of loyalty. However, bribes, kickbacks and bought promotions are not a mistake, but rather a feature of the system. “Since the Party is inherently above the law, corruption cannot be eradicated without dismantling the system,” states the American Naval War College in an analysis of the Miao scandal.
The choice of words with regard to Miao was striking: Usually, in such cases, the word used is “diaocha”, meaning “investigate”. In Miao’s case, the word used was “jiancha”, which means “to examine” and sounds less serious. It could indicate that he might be spared a severe sentence such as life imprisonment or a suspended death sentence.
In any case, it was a political decision by Xi to dismiss the senior military officer. But why did he suddenly drop him? Factional struggles could be behind it, there is speculation. Or personal networks could have become too powerful. Miao was a leading member of the Fujian faction – along with the Zhejiang faction, one of the two largest groups from the two provinces that are considered Xi’s power base because he was governor there. Allegedly, the Fujian faction has gained the upper hand. The accusations against Miao as its prominent representative could have come from forces that wanted to harm the group. It is said that Xi may not have been able to ignore the accusations.
However, the renowned former reporter for “Nanfang Zhoumo” (Southern Weekly) and military expert Cai Shenkun believes that Xi has lost confidence in Miao. The admiral had promoted so many of his own followers, especially from the navy, that Xi perceived him as a “threat”, says Cai. For this reason, naval commander Dong Jun was not accepted into the military commission or the State Council last year like his predecessors – despite his appointment as defense minister by Miao. A “highly embarrassing position”, according to the expert.
The fall of Miao could affect Minister Dong and other senior military officials who owe their appointments to him. There has already been a report in the Financial Times about allegations of corruption against Dong. But for the time being, the new defense minister is continuing his public appearances as usual. Once investigations are underway, however, some more dirt could be swept up against him and others. Andreas Landwehr
Patrick Schulz has been Director of Sales for Germany at BYD since February. This is the first time the position has been filled as part of the car manufacturer’s growth strategy. Schulz has been working in the automotive industry for more than 25 years and was previously Head of Sales for Germany at Chinese manufacturer MG Motor. Prior to that, he was Head of Sales Strategy and Deputy Sales Director at Hyundai Motor Germany.
Is something changing in your organization? Send a note for our personnel section to heads@table.media!
A quiet location looks different. A stubborn homeowner in the eastern Chinese province of Jiangxi did not want to give way for the construction of a highway – he was not happy with the conditions imposed by the Jinxi (金溪) county government. Unfortunately, he is even less satisfied with the result: The highway was unceremoniously built around his house, and he can only enter his property through a pipe. The bizarre spectacle first spread on social media in China and then also on Western platforms. Online, the building has been given the honorary title of “coolest nail house” (“最牛钉子户”). In China, “nail houses” are the name given to all the houses of stubborn owners who refuse to leave the field during construction projects. This happens more often in the People’s Republic than you might think. The term has even made it into an international Wikipedia entry that has been translated to German – feel free to look it up.
20-year-old Chloe Cheung is a democracy activist from Hong Kong and lives in exile. She and her family had to leave their home country in 2020 for safety reasons after her name was recorded by the police during a demonstration. She now lives in the UK, but she can’t rest.
The Hong Kong authorities have put a bounty of one million Hong Kong dollars on the young woman’s head, she is also receiving threats on social media and feels threatened. Cheung criticizes the British authorities, who initially only gave her a brochure with self-protection measures and an emergency telephone number after she requested help. In an interview with Fabian Peltsch, Cheung explains how she wants the UK to deal with China and what her plans are for the future.
What makes Temu and Shein products stand out is their extremely low prices. Ordering for up to USD 800 was the “limit” until recently – thanks to the “de minimis” rule, this amount was previously the threshold above which import duty was due in the USA. In the EU, it is EUR 150. Donald Trump had only just repealed the de minimis rule when import tariffs were imposed on all goods from China and then USPS suspended the transportation of Chinese packages altogether.
In today’s Feature, Marcel Grzanna describes what the blows mean for China’s e-commerce giants and what reaction the EU is planning to the cheap packages.
I wish you a good read.
The Hong Kong authorities have put a bounty of 1 million Hong Kong dollars (about EUR 116,500) on your head. You are the latest activist outside Hong Kong to be targeted in this way. What led to this?
I got involved in the pro-democracy movement at the age of 14 and took part in the protests in 2019. During one of the demonstrations, my name was recorded by the police, which directly put me in danger. After the introduction of the National Security Law, my family and I no longer felt safe in Hong Kong. So we made the difficult decision to flee to the UK in August 2020. The bounty was then suspended partly due to social media posts related to my work with the Committee for Freedom in Hong Kong Foundation, which I had started in exile.
How did you react when you found out that there was suddenly a bounty on your head?
When I saw the news, I was completely shocked. Friends, colleagues and family members contacted me, asking what had happened. I didn’t even know how to explain it to them, because what I am doing is not a crime. I am just standing up for Hong Kong and speaking the truth about what is happening there.
What exactly are you accused of?
I am accused of two crimes: inciting secession and collaborating with foreign forces. Basically, this means that even speaking to foreign politicians or media outlets like yours is considered a crime by the Hong Kong authorities. These accusations are purely politically motivated and are meant to silence activists like me.
Under the National Security Law, the situation in Hong Kong has worsened massively. You can now be arrested simply for wearing a T-shirt with a political message or holding up a flag with a protest slogan.
How has the bounty affected your life so far?
One of the most painful consequences is that many of my friends and family members in Hong Kong have cut off contact with me. They fear that just being connected to someone with a bounty on their head could put them in danger themselves. It’s incredibly frustrating and isolating, but I understand their fear.
I have also received threats on social media. Some are even calling for the government to increase the bounty to create even more incentives for my kidnapping. It is frightening to know that there are people who mean such threats seriously.
I also have the suspicion that I am being followed. The feeling of being constantly watched is extremely unsettling. Although I am in the UK, the risks and pressure from the Chinese government seem to follow me everywhere.
Does this mean that you do not feel sufficiently protected in the UK?
When I first heard about the bounty, the Metropolitan Police contacted me. They said they were aware of the situation from the media reports. There is a protocol for such situations. They gave me a leaflet with self-protection measures and an emergency phone number. If anything happened, they told me to call 999. I found this support unsatisfactory – a pamphlet and a phone number don’t solve the real dangers I face.
After speaking to media outlets such as The Times and The Telegraph, the Metropolitan Police contacted me again, visited me at home, and carried out a risk assessment. I appreciated this action, but it also made me realize that without the media attention, they may not have acted at all. My case received special attention because of my age and personal history – but many other Hong Kong activists don’t get this support.
What are you most afraid of?
There are worrying incidents that illustrate what I am afraid of. One example is the incident in Manchester where staff at the Chinese embassy tried to drag a protester into the consulate building. Fortunately, the British police intervened and were able to free him. But what if they had not intervened? The protester could have disappeared and no one would have known what had happened to him.
In addition, there are hardly any consequences for such repression. If Chinese students attack Hong Kong protesters, they may be arrested but not charged. This sends a dangerous message: That people with links to the Chinese Communist Party – or even Chinese nationals in general – can do what they like in the UK without fear of serious punishment. This lack of accountability is extremely worrying.
What would you like to see from the government?
First, the British government should do more than just offer a visa program for Hong Kongers. The ability to enter the country was an important first step, but the key question is: How will we be protected once we are here? Many of us continue to experience repression in the UK – be it through the influence of the Chinese government, Chinese students, members of the Chinese community, or even spies.
Should the UK also impose sanctions?
I don’t think it’s about breaking off relations with China. Dialogue is important and it is essential to talk to China. But it must not be about simply doing everything China demands. It’s about finding a way to negotiate on an equal footing and setting our own terms. We must ensure that the Chinese government does not have full control and that we do not simply accept their demands without standing up for our own values and rights.
What are your plans for the future?
At the moment I’m doing a gap year. The bounty has made many aspects of my life more difficult. For example, it might be more difficult for me to apply to university in the future. Many UK universities receive significant funding from China and we know that this influence can affect what is taught. Some professors avoid speaking critically about the Chinese Communist Party for fear of upsetting Chinese students and losing funding opportunities.
My career prospects are also affected. A friend of mine who works in banking told me that banks are reluctant to hire people who are too political. The reality is that the risks I now face are with me everywhere I go – they affect both my education and my career prospects. I never thought activism would become my main job in life, but with the bounty, I may have to advocate for Hong Kong in this way for the rest of my life.
Chloe Cheung grew up in Hong Kong and became involved in the pro-democracy movement at an early age. In 2020, at the age of 15, she went into exile in the UK. In December 2024, the authorities in Hong Kong issued a warrant for her arrest. She is accused of calling for secession while in exile and collaborating with foreign forces. A reward of one million Hong Kong dollars was also offered for her capture.
The current week has seen major setbacks for Chinese online providers of low-cost products. In both Europe and the USA, the business models of Shein, Temu, and AliExpress suffered a shot across the bow. The EU Commission decided to introduce a handling fee on parcels from suppliers entering the European Union, while the USA stopped the “de minimis” regulation and thus plugged a duty-free loophole for deliveries worth less than 800 US dollars.
The conclusion is simple: European and American consumers who want to shop on the platforms in the future will have to pay extra in most cases. It is still unclear how high the bill will be. Nevertheless, a slump in sales seems inevitable for Chinese companies. After all, with their unrivaled low-cost offers, the platforms have for years mainly won over those consumers who were simply not prepared to pay more than Temu and Co. had previously demanded. In view of the quality deficits of many of the products sold, it is questionable how much more they are willing to pay.
New rules here and there not only directly harm companies but also mean more bad news for the Chinese economy. E-commerce is one of the key pillars that should keep the country on a stable growth path. A slump in sales amounting to several billion euros is also hurting the second-largest economy.
According to the EU Commission, 91% of all e-commerce imports with a value of up to EUR 150 came from China last year. This means that the volume has more than doubled since 2023 – from 1.9 billion to 4.17 billion shipments. The growing popularity of the supposed bargain portals is also reflected in the app stores. With almost 545 million downloads in 2024, Temu topped the list in e-commerce. Shein followed in second place with around 235 million downloads.
The catch is that the goods are often inferior or counterfeit. Temu’s advertising campaigns for supposed top deals include, for example, tablets for well under EUR 100 that are supposed to do everything but turn out to be electronic waste after a short time, as many users complain. Or soccer shirts from German and European professional clubs for EUR 20 – every soccer fan knows that this money for licensed products from a club is hardly enough to buy a single sock, let alone a jersey. So where do such products come from, if not from counterfeiting workshops?
EU Consumer Commissioner Michael McGrath emphasized the urgency of only allowing safe products to enter the internal market. “Consumer rights” are to be protected. This will only succeed to a limited extent, as quality standards can only be guaranteed on a random basis. But the signal will get through to manufacturers. However, the European Parliament and EU member states still have to give the green light to the plans for fees.
However, it is also true that the EU customs authorities are simply overwhelmed by the volume of parcels. A patchwork of 27 national customs authorities, whose processes are not sufficiently harmonized, have facilitated the flood of shipments from China.
The German economy welcomed the planned fee “The same rules must finally apply to all market participants in the European single market,” said Stephan Tromp, Deputy Managing Director of the German Retail Association (HDE). Providers such as Temu and Shein should no longer be allowed to get away with breaking the rules. The German Chamber of Industry and Commerce (DIHK) expressed a similar view. It is not about preventing international trade, but about creating a level playing field. German retailers would bear high tax burdens and strict requirements, while foreign suppliers exploited loopholes.
However, there was also comparatively good news for the Chinese online giants. The postal service provider USPS announced that it would continue to transport packages from China and Hong Kong after all. The day before, the agency had temporarily suspended the service after additional tariffs of ten percent on all goods from China came into force on Tuesday. USPS and Customs and Border Protection are working closely together to implement the new tariffs, it said in a statement.
Nevertheless, the suspension of transportation was probably the least of the suppliers’ problems. US President Donald Trump had previously ended the “de minimis” exemption from import duties. This previously allowed duty-free deliveries of low-value parcels from the People’s Republic to the United States.
This was a very generous exemption in the USA. The de minimis threshold in the EU is much stricter, at EUR 150. During Barack Obama’s presidency, the US Congress quadrupled the exemption from the previous USD 200. As a result, the number of imported parcels subject to this rule exploded. The number of shipments using the de minimis rule has increased by more than 600 percent over the past ten years. According to the Customs and Border Protection Agency, it amounted to more than one billion in 2023. The main beneficiaries were Chinese online providers.
The controversy is not just about the chronic deficit in US trade with China. It’s also about the synthetic opioid fentanyl, which killed nearly 75,000 people in 2023 alone. Reuters reporters found last year that they could easily import the raw materials for at least three million fentanyl tablets with a potential street value of three million dollars at a price of just over USD 3,600. The shippers managed to label the packages as electronic goods, for example.
Analysts at the major Japanese bank Nomura estimate that China exported goods worth USD 240 billion worldwide under de minimis regulations last year. This would correspond to seven percent of exports. The contribution to gross domestic product is estimated at 1.3 percent. The experts therefore forecast that the abolition of the US threshold would slow Chinese export growth by 1.3 percentage points and economic growth by 0.2 points.
Analysts assume that shipments from Temu and Shein to the USA will now become more expensive. However, it is not necessarily to be expected that this will dramatically reduce the number of shipments. Chinese online retailers are likely to be cheaper than US retail chains even under the new rules. Collaboration: Emily Kossak
China has lodged a complaint with the World Trade Organization (WTO) over the tariffs imposed by US President Donald Trump on Chinese goods, the Geneva-based organization announced on Wednesday. On Saturday, Trump had ordered tariffs on imports from Mexico, Canada, and China, demanding that these countries curb the flow of fentanyl – and in the case of Canada and Mexico, also illegal immigration. However, he later suspended the tariffs against the two North American nations.
China, which was hit with a 10% tariff on its exports to the US, had previously stated its intention to challenge the measure at the WTO. In a statement cited by the WTO, the Chinese government argued that the measures appear inconsistent with US obligations under the trade organization’s founding agreement. “China reserves the right to introduce additional measures and claims related to these matters during consultations and in any future request for the establishment of a panel,” the statement read.
WTO consultations typically lead to a dispute settlement process within weeks, during which experts assess whether the tariff increases comply with WTO regulations. This review can take several months. If the panel rules in China’s favor, Beijing would be authorized to impose retaliatory tariffs of equivalent magnitude. In fact, China has already responded by announcing tariffs on US energy exports: 15% on coal and liquefied natural gas, as well as 10% on crude oil, agricultural machinery, and certain vehicles.
China is planning to make it compulsory to obtain a license to broadcast micro-dramas in order to promote their “healthy and prosperous development”. The National Radio and Television Administration stated on Wednesday that all micro-short dramas must first obtain a license for the distribution of online dramas.
Micro-dramas, vertically shot, minute-long episodes with frequent plot twists, have become increasingly popular in China in recent years. With a value of five billion US dollars per year, some experts believe that short films are an increasingly dominant competitor for the Chinese film industry, which is the second largest in the world after Hollywood and is dominated by the state-owned China Film Group.
Between late 2022 and early 2023, the National Broadcasting Authority said it organized a “special rectification campaign”, during which it removed 25,300 micro-dramas with a total of almost 1.4 million episodes due to their “pornographic, bloody, violent, lowbrow, and vulgar content”. rtr
After a construction period of seven months, the Tesla Shanghai Megafactory will start series production next Tuesday, reports Car News China. Test production has been running since the end of 2024. In contrast to the Tesla Shanghai Gigafactory, the Megafactory will produce energy storage batteries, so-called megapacks. The factory is Tesla’s first energy storage project outside the United States. In the first year, 10,000 units are planned, which corresponds to a capacity of 40 GWh.
Energy storage systems are an important prerequisite for keeping the grids stable as the use of renewable energies increases. Storage systems connected to the electricity grid can absorb surplus electricity generated by wind or solar power plants, for example, and feed it back into the grid when needed. The industry is growing rapidly in China: According to figures from the National Energy Administration, installed capacity amounted to 168 GWh for 2024, a growth of 130% compared to the previous year.
The most important players in the industry currently include BYD, Star Charge, CATL, and GoodWe. CATL and BYD will act as battery cell suppliers for the Megafactory. A Tesla Megapack can store more than three MWh of energy, which is equivalent to the amount of energy needed to power 3,600 households in Shanghai for one hour. jul
China will maintain anti-dumping duties on imports of potato starch from the EU for a further five years. This was announced by the Ministry of Commerce on Wednesday. The duties have been in place since 2007 and were already adjusted once in 2011. The latest extension comes into force on Thursday, Feb. 6, 2025.
The duties apply to French company Roquette Freres, Dutch company Coöperatie Koninklijke Avebe (Royal Avebe) and German company Avebe Kartoffelstärkefabrik Prignitz/Wendland GmbH, among others. Potato starch is used in the food industry.
China has also launched trade investigations into some dairy and pork imports from the EU due to concerns about possible subsidies or dumping. The bloc had previously imposed tariffs on Chinese exports of electric vehicles. rtr
Since the summer of 2023, two defense ministers have been ousted one after the other in China, as well as a good dozen senior military and arms managers. None of them had such a long history with party leader Xi Jinping as Miao Hua. The 69-year-old belonged to the closest circle and was still far above the defense minister in the power hierarchy.
The connection goes back to the beginning of Xi’s career as governor of Fujian province from 1999 to 2002. Miao was born in Fujian in 1955 and joined the military at the age of 14. After holding positions as a political commissar, he rose to become political director of the 31st Army Group in 1999, which Xi frequently visited. The two are said to have known each other well at the time.
Miao’s rise began when Xi was appointed party leader in 2012. The military man was promoted to political commissar of the navy in 2014. The unusual switch from the army to the naval forces is considered typical of Xi. By placing his followers in positions unconventionally and bypassing established networks, he is extending his control.
In the navy, Miao was responsible for the promotion and selection of candidates. In 2017, Xi appointed the admiral to the Central Military Commission, the highest organ of power under him as commander-in-chief. As director of the political department, Miao was also responsible for promotions, organization, ideology and party discipline.
As positions in China’s military are often bought through benefits to those in charge or their family members, this position in particular usually offers plenty of opportunities for bribery. Miao’s predecessor in the post, General Zhang Yang, fell over allegations of corruption. He took his own life in 2017 during the investigation.
Nevertheless, Miao’s dismissal at the end of November came as a surprise. State media only reported after a delay, with the accusation being “violations of party discipline“, which in party parlance usually means corruption and lack of loyalty. However, bribes, kickbacks and bought promotions are not a mistake, but rather a feature of the system. “Since the Party is inherently above the law, corruption cannot be eradicated without dismantling the system,” states the American Naval War College in an analysis of the Miao scandal.
The choice of words with regard to Miao was striking: Usually, in such cases, the word used is “diaocha”, meaning “investigate”. In Miao’s case, the word used was “jiancha”, which means “to examine” and sounds less serious. It could indicate that he might be spared a severe sentence such as life imprisonment or a suspended death sentence.
In any case, it was a political decision by Xi to dismiss the senior military officer. But why did he suddenly drop him? Factional struggles could be behind it, there is speculation. Or personal networks could have become too powerful. Miao was a leading member of the Fujian faction – along with the Zhejiang faction, one of the two largest groups from the two provinces that are considered Xi’s power base because he was governor there. Allegedly, the Fujian faction has gained the upper hand. The accusations against Miao as its prominent representative could have come from forces that wanted to harm the group. It is said that Xi may not have been able to ignore the accusations.
However, the renowned former reporter for “Nanfang Zhoumo” (Southern Weekly) and military expert Cai Shenkun believes that Xi has lost confidence in Miao. The admiral had promoted so many of his own followers, especially from the navy, that Xi perceived him as a “threat”, says Cai. For this reason, naval commander Dong Jun was not accepted into the military commission or the State Council last year like his predecessors – despite his appointment as defense minister by Miao. A “highly embarrassing position”, according to the expert.
The fall of Miao could affect Minister Dong and other senior military officials who owe their appointments to him. There has already been a report in the Financial Times about allegations of corruption against Dong. But for the time being, the new defense minister is continuing his public appearances as usual. Once investigations are underway, however, some more dirt could be swept up against him and others. Andreas Landwehr
Patrick Schulz has been Director of Sales for Germany at BYD since February. This is the first time the position has been filled as part of the car manufacturer’s growth strategy. Schulz has been working in the automotive industry for more than 25 years and was previously Head of Sales for Germany at Chinese manufacturer MG Motor. Prior to that, he was Head of Sales Strategy and Deputy Sales Director at Hyundai Motor Germany.
Is something changing in your organization? Send a note for our personnel section to heads@table.media!
A quiet location looks different. A stubborn homeowner in the eastern Chinese province of Jiangxi did not want to give way for the construction of a highway – he was not happy with the conditions imposed by the Jinxi (金溪) county government. Unfortunately, he is even less satisfied with the result: The highway was unceremoniously built around his house, and he can only enter his property through a pipe. The bizarre spectacle first spread on social media in China and then also on Western platforms. Online, the building has been given the honorary title of “coolest nail house” (“最牛钉子户”). In China, “nail houses” are the name given to all the houses of stubborn owners who refuse to leave the field during construction projects. This happens more often in the People’s Republic than you might think. The term has even made it into an international Wikipedia entry that has been translated to German – feel free to look it up.