Published by Global Banking & Finance Review®
Posted on December 10, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleEU regulators raided Temu's Dublin office over potential Chinese subsidies. The move targets unfair foreign aid and competition from non-EU companies.
BRUSSELS, Dec 10 (Reuters) - 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 ecommerce giant PDD Holdings, a person familiar with the matter said on Wednesday.
Temu did not immediately respond to a request for comment.
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 did not immediately reply to an emailed request for comment.
Temu sells everything from smartphones to duvet covers and leggings at ultra-low prices and has "shop like a billionaire" as its tagline. It has drawn in millions of cash-strapped shoppers in the U.S., its biggest market, and in the EU where it has around 116 million average monthly users.
The raid comes as the EU plans to crack down on low-value ecommerce shipments that have flooded into the bloc thanks to a customs waiver on parcels worth less than 150 euros. The EU executive plans to scrap that waiver by the end of next year.
(Reporting by Foo Yun Chee, additional reporting by Helen Reid in London;Editing by Elaine Hardcastle)
Ecommerce refers to the buying and selling of goods or services using the internet. It encompasses various online transactions, including retail sales, electronic payments, and online banking.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, upholding treaties, and managing the day-to-day operations of the EU.
Financial stability refers to a condition in which the financial system operates effectively and efficiently, allowing for the smooth functioning of financial markets and institutions without significant disruptions.
Retail trade involves the sale of goods and services directly to consumers. It includes various formats such as physical stores, online shops, and mobile commerce platforms.
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