kathimerini.gr
Chinese e-commerce platforms' impact on the Greek economy
In 2024, Chinese platforms Shein and Temu generated an estimated €529-627 million in revenue in Greece, resulting in significant losses for the Greek economy, including €105.7-114.8 million in direct losses and 4,725-5,601 job losses, according to a study by the Hellenic Federation of Enterprises and Entrepreneurship (ESEE).
- What are the underlying factors contributing to these economic losses, and how do they relate to broader economic trends?
- The significant losses are attributed to the existing de minimis regulation, exempting packages under €150 from customs duties. This allows platforms like Shein and Temu to avoid taxes and duties, undermining local businesses. The shift in advertising spending from the US (where de minimis was abolished) to Europe, amounting to €1.4 billion, further exacerbates the issue.
- What are the immediate economic consequences of the increasing popularity of Chinese e-commerce platforms like Shein and Temu in Greece?
- In 2024, Shein and Temu's operations in Greece led to estimated losses of €105.7-114.8 million in direct revenue, €11.6-13.8 million in taxes, €30-35.5 million in social security contributions, €7.6-9 million in employee service tax, and €56.5 million in customs duties. This resulted in the loss of an estimated 4,725-5,601 jobs.
- What policy recommendations are proposed to mitigate the negative impacts of these platforms on the Greek economy, and what are the potential long-term consequences of inaction?
- The ESEE proposes implementing an administrative fee, abolishing the de minimis regulation by 2026, establishing a supplementary mechanism for controlling small packages, and strengthening state oversight. Failure to act will worsen the situation, potentially causing the collapse of thousands of businesses, as noted by the ESEE president.
Cognitive Concepts
Framing Bias
The article frames the impact of Shein and Temu on the Greek economy negatively, emphasizing job losses and revenue reduction for the government and businesses. The headline isn't provided, but the opening paragraph sets a negative tone, highlighting the potential for significant economic harm. The use of phrases like "σβήνουν χιλιάδες θέσεις εργασίας" (erase thousands of jobs) and "στερούν έσοδα από το Δημόσιο" (deprive the public of revenue) contributes to this negative framing. While statistics are presented, the emphasis is on the negative consequences, potentially overshadowing any potential benefits of these platforms.
Language Bias
The article uses strong, negative language to describe the impact of Shein and Temu. For example, "σβήνουν χιλιάδες θέσεις εργασίας" (erase thousands of jobs) is a dramatic and potentially inflammatory phrase. The use of words like "στερούν" (deprive), "απορρόφησαν" (absorbed), and "χάθηκαν" (lost) consistently paint a bleak picture. More neutral alternatives could include phrases like "reduced employment", "decreased government revenue", or "impacted market share". The repeated emphasis on losses further reinforces this negative tone.
Bias by Omission
The article focuses heavily on the negative economic consequences of Shein and Temu, potentially omitting discussion of positive aspects. For example, it doesn't mention any benefits to consumers from lower prices or increased product variety. It also doesn't consider the possibility that some of the lost revenue might be offset by increased tax revenue from other sources or that new businesses might emerge due to market shifts. The lack of an explicit counter-argument or alternative perspectives weakens the overall analysis.
False Dichotomy
The article presents a false dichotomy by framing the situation as a zero-sum game: either Shein and Temu thrive, causing significant economic harm, or Greek businesses prosper. This overlooks the potential for finding a middle ground, such as implementing regulations to address concerns about tax evasion and unfair competition, while also allowing consumers to benefit from these platforms. The president of ESEΕ's statement, "Πλέον πρόκειται για ζήτημα ζωής ή θανάτου" (It's a matter of life or death), is an example of this overly dramatic eitheor framing.
Sustainable Development Goals
The influx of Chinese platforms like Shein and Temu is causing significant job losses in Greece, with estimates ranging from 4,725 to 5,601 lost jobs in 2024 alone. This directly impacts decent work and economic growth by reducing employment opportunities and harming local businesses. The platforms also lead to significant revenue losses for the Greek government, further hindering economic growth.