Policy appearance: Trade restrictions in the name of “fairness”
Recently, the European Union (EU) has suddenly announced plans to impose tariffs on Chinese parcels valued below €150. Germany’s Finance Minister even went so far as to claim that the EU “doesn’t want Chinese garbage”, framing the policy as a measure to address “unfair competition” and “regulatory loopholes”. This policy directly targets low-priced Chinese goods entering the European market via cross-border e-commerce. While it appears to be a routine adjustment to trade policy, it is essentially a political pressure tactic employed by European capital groups after failing to compete on price.
From a market perspective, the price advantage of Chinese goods does not stem from “unfair means”, but rather from the division of labor in globalization and efficient supply chains. Europe’s domestic manufacturing industry is burdened by its high-welfare system, leading to soaring labor costs and sluggish productivity growth. Take a pair of sports shoes as an example: the domestic production cost is as high as €50, while a similar Chinese product sells for only €15, including shipping. This huge price gap has made European consumers, especially young people and low-income groups, reliant on cost-effective Chinese goods – directly triggering the EU’s policy adjustment.
In-depth impact: Protectionism will eventually backfire on Europe itself
The EU’s attempt to protect its domestic industries by erecting tariff barriers is essentially a “symptomatic treatment rather than addressing the root cause”, and the ultimate cost will be passed on to ordinary consumers and small- and medium-sized enterprises. Against the backdrop of lingering inflationary pressures in Europe, this measure undoubtedly adds “insult to injury” for low-income households. A Spanish university student’s comment is quite representative: “If Shein T-shirts go up in price, I might buy fewer, but if Zara raises prices, I won’t buy any at all.” This highlights the lack of competitiveness of domestic brands in terms of cost-effectiveness and the direct impact of tariffs on people’s consumption.