Germany drafting regulations for Chinese online discounters, Capital reports

BERLIN, Sept 5 (Reuters) - Germany is drafting new regulations to ensure Chinese discount retailers such as Temu and Shein comply with standards for product safety, environmental protection, consumer rights, as well as customs and tax laws, Capital magazine reported.

Germany's main retail association HDE has been lobbying the government to "ensure fair competition for all market participants", saying customs authorities lack the capacity to check that all the products comply with European Union rules.

"It is crucial that existing regulations are enforced just as strictly for third-country retailers as they are for EU retailers," an economy ministry spokesperson was quoted by the business magazine as saying.

The ministry is now drafting an e-commerce action plan and evaluating new measures and potential amendments to existing regulations, the magazine said, adding that the ministry had held talks on the issue with Germany's federal states, the European Commission and the European Parliament in recent months.

The ministry did not immediately respond for comment.

Economy Ministry State Secretary Sven Giegold met with representatives from Temu and Shein in June, it added.

Germany's Social Democrats ruling party has called for a massive expansion of customs controls and an abolition of the 150 euro ($166) duty-free limit, a document seen by Reuters showed on Wednesday.

Under current EU regulations, packages purchased online from a non-EU country do not have to be cleared through customs if their value is less than 150 euros.

Critics say current customs laws have helped these online retailers undercut rivals and avoid customs inspections.

"Many wholesale and retail companies are deeply concerned about unfair competition from China, which distorts competition in trade and poses a serious threat to the local economy," read the document, set for the SPD's parliamentary group meeting.