3.1 – The state and globalisation
3.5 – Regionalism and the EU
The European Union (EU) is often presented as the most developed example of regionalism in the world. By pooling sovereignty through shared institutions, the EU has created a political and economic bloc of around 450 million people. One consequence of this integration is the ability of EU institutions to regulate powerful multinational corporations that operate across national borders.
A clear example emerged recently when the European Commission imposed a €200 million fine on Temu, the Chinese-owned online retail platform. The Commission concluded that Temu had failed to properly assess and manage risks associated with products sold through its marketplace. An investigation found that many products purchased through the platform, including baby toys and electrical chargers, failed EU safety standards. Some toys contained excessive levels of chemicals, while others presented choking hazards.
The significance of the case extends beyond consumer safety. Temu is not a European company, yet it became subject to EU regulation because it operates within the European market. Under the Digital Services Act, the EU can require large online platforms to identify and address systemic risks, demonstrating how regional institutions can exercise authority over non-state actors whose activities cross national borders. The case also highlights an important feature of contemporary global politics.
Economic globalisation has increased the influence of multinational corporations, but it has also encouraged the development of new forms of politically globalised governance above the state level. Rather than individual governments acting alone, EU member states have collectively created institutions capable of enforcing rules on major corporations. The Temu fine illustrates how regional organisations can act as significant political actors in their own right, shaping corporate behaviour and setting standards that influence global markets.