In the EU, the dilemma of Chinese strollers sold as ‘made in Europe’

Brussels – Not only electric cars ‘made in China’ sold below cost, and for which the EU had to impose tariffs. Chinese strollers are also invading the European Union, made at a lower cost and therefore bought by Europeans below cost and resold at a higher price. This unfair competition is putting a strain on Polish industry, and Kosma Złotowski (ECR), a member of the Transport Committee and one of the quaestors of the EU Parliament, is sounding the alarm.

In addition to unfair competition, there is a scam, as Złotowski explains in his query to the EU Commission since “Operators importing products from China present themselves as EU producers, and, in doing so, take advantage of consumers’ desire to buy ‘Made in Europe’ products.” As a result, consumers believe they are buying a product made in the EU when, in fact, they are buying products imported from China, “whose production is often subsidized by the state.”

The Commission takes notice. “Pushchairs, whether imported or manufactured in the EU, are not subject to origin marking,” Trade Commissioner Maros Sefcovic acknowledges. So, a regulatory vacuum makes the early childhood product the subject of trade practices over which the EU executive can do little. However, the Union Customs Code (UCC) states that imported products originate in the country where they underwent their last substantial and economically justified transformation. Moreover, “usually, mere assembly does not confer origin.”

In short, according to Sefcovic, there are valid tools and elements to identify cases of fake ‘made in the EU’  strollers. For this reason, Brussels currently believes there is no need to intervene. Meanwhile, Sefcovic notes that the sector industry “can contact the Directorate General of Commerce complaint office for advice” and complaints. Moreover, strollers are not like electric cars. Here, Sefcovic points out, tariffs are an impractical option. “Increasing EU tariffs on strollers may not be the appropriate policy tool.” Sefcovic explains that the maximum bound rates authorized for the EU under the World Trade Organization commitments for strollers “correspond to the applied rates of the most favored nation.”

An international trade law issue prevents the EU executive from launching a further tariff war against Beijing. Non-discrimination between trading partners is granted through the ‘most-favored-nation treatment.’ According to WTO rules, an advantage negotiated with one country must be extended to all trading partners that are members of the WTO.

So what can the EU do? In the meantime, it is waiting for the Ecodesign regulation for Sustainable Products (ESPR), a digital product passport to store sustainability information on products, accessible electronically. “The first ESPR working plan will be adopted in April 2025, but pushchairs are not prioritized,” Sefcovic confirms. “Were the Commission to propose a label certifying EU origin, it could take into consideration the origin criteria set out in the UCC.” For now, there is no such intention. New European citizens will still have to be pushed onto products made in China and passed off as European.