Temu’s Dublin office raided by EU regulators on Chinese subsidy concerns
The raid comes amid increasing concern within the European Union over cheap imports from China
Temu’s European headquarters in Dublin were raided by EU regulators last week on concerns about potential Chinese state subsidies granted to the online retailer, a subsidiary of China’s e-commerce giant PDD Holdings, a person familiar with the matter said on Wednesday.
Temu did not immediately respond to requests for comment.
The raid comes amid increasing concern within the EU over cheap imports from China, as low-value e-commerce shipments have flooded into the bloc thanks to a customs waiver on parcels worth less than €150 (US$175), which European retailers say gives platforms like Temu and Shein an unfair advantage.
The EU executive plans to scrap that duty exemption by the end of next year.
The European Commission’s Foreign Subsidies Regulation (FSR) takes aim at unfair foreign aid for companies with the goal of reining in competition from non-EU companies subsidised by their governments.
The commission can impose fines of up to 10 per cent of a company’s annual aggregated turnover for breaches.
