The Impact of the EU's New Product Safety Regulation on Chinese Businesses

Summary

• The EU new product safety rules will affect Chinese businesses that sell products in the EU.
• Chinese businesses will face new obligations, such as the requirement to have a responsible person in the EU that is responsible for each product's safety.
• The new rules also target online marketplace providers which face new obligations such as the need to immediately remove dangerous products from their website.
• Businesses should make sure they have the means to comply with the new rules before they fully come into force in December 2024.

Chinese companies will face tighter regulations when selling products in the European Union under the 27-nation bloc's new product safety regime, lawyers say.

The General Product Safety Regulation (GPSR), which took effect in June with an 18-month transition period, will tighten requirements for all products sold in the EU, regardless of their country of origin. But Chinese firms are especially vulnerable because in 2020, half of the products listed as dangerous came from China, according to Dita Charanzová, who was the member of the European Parliament responsible for the new law. 

Lawyers familiar with the matter have told CLP that Chinese companies should pay attention to the new obligations they face arising from their role in the supply chain. In particular, the European Union has responded to the shift to digital shopping with stricter obligations for online marketplace providers such as Alibaba. Chinese companies must take action to comply with the new rules before the transition period ends on Dec. 13, 2024.