Beijing has voiced strong opposition to the European Union’s recent €550 million fine imposed on AliExpress for breaching the bloc’s Digital Services Act (DSA), condemning the penalty as discriminatory and a barrier to Chinese businesses operating in Europe.

The Chinese Ministry of Commerce issued a statement expressing “strong dissatisfaction and serious concern” over the decision, urging the EU to treat Chinese companies fairly and stop using platform regulation as a pretext for erecting digital barriers. The ministry accused Brussels of exploiting ambiguous legal provisions to exercise discretionary power against Chinese e-commerce firms and pledged robust support for these companies, including backing legal challenges and taking “forceful measures” to protect their interests.

Alibaba Group, which owns AliExpress, said it plans to contest the fine, describing the penalty as disproportionate and not reflective of the company’s efforts to enhance compliance. A company source indicated that AliExpress had invested significantly in European Union regulatory adherence over the last two years. These efforts included engaging more than ten internationally recognized third-party advisory firms to improve risk assessment, content moderation, quality control, and counterfeit item monitoring.

The European Commission, which announced the fine on Monday, found that AliExpress failed to adequately assess and mitigate systemic risks posed by illegal, unsafe, and counterfeit goods on its platform. The commission highlighted shortcomings in the company’s detection and removal processes, noting that its moderation teams were insufficiently staffed relative to the volume of listings reviewed. EU testing reportedly uncovered that items such as counterfeit products, hazardous toys, and unsafe cosmetics were promoted to customers through recommendation algorithms and advertisements before removal. Despite moderation efforts, a significant number of unlawful listings remained live on the platform.

AliExpress has until October 20 to submit a comprehensive plan detailing how it intends to address these violations. The fine is part of a broader enforcement trend by Brussels targeting international technology firms under the DSA and the Digital Markets Act (DMA). Earlier this year, the Chinese e-commerce platform Temu was fined €200 million for DSA violations, while Elon Musk’s social media platform X received a €120 million fine in December, a move that sparked controversy in the United States.

Meanwhile, the European Commission is reportedly preparing formal subsidy charges against Chinese e-commerce giant JD.com concerning its €2.5 billion takeover bid for German electronics retailer Ceconomy. Separately, China’s Ministry of Commerce criticized a new French law aimed at curbing ultrafast fashion, warning that it could negatively impact Chinese platforms.

The dispute underscores mounting tensions between China and the EU over digital market regulations and the treatment of foreign technology companies operating within Europe.