How Switzerland could become a hub for Chinese e-commerce

Across Europe, Chinese e-commerce firms like Temu and Shein have boomed in recent years. (Keystone/DPA/Oliver Berg

Since July 1, a tax on small packages from China has been in force in the European Union (EU). Some worry that non-EU member Switzerland represents an easy loophole for big Chinese platforms.

Europeans have developed an appetite for the cheap products sold by Chinese platforms like Shein and Temu. Such online shopping has boomed in recent years, fuelled by ads and partnerships on social media. And the range of products available is vast, from household goods and clothes to sports equipment, electronics, among others.

Overwhelmed customs

To curb this trend, the EU decided to impose a tax on small orders. Since July 1, any purchased parcel worth less than €150 (CHF139) has been subject to a flat-rate tax of €3.

However, there is an easy way for the Chinese firms to circumvent the measure: send orders by air to Switzerland before forwarding them to other European countries by road or rail. Swiss customs are already under pressure and overwhelmed by an influx of several hundred thousand parcels a day.

No action until 2028

As a result, Swiss customs are simply unable to inspect every parcel coming from China. Meanwhile, products that do not meet health and safety standards could easily enter Europe via Switzerland, says NGO Public Eye; it criticises the Swiss authorities for not legislating on the issue at the same time as the EU.

“It is a problem that the government did not quickly introduce common rules in line with the EU,” says David Hachfeld, a textiles expert at Public Eye. “Today, we are seeing the consequences.”

The Swiss parliament has approved a tax on small parcels ordered on Chinese platforms, but it is not expected to come into force until 2028.

Translated from French, sub-edited by Alexandra MV Andrist/dos