(Yicai) Dec. 26 -- Chinese exporters have shifted focus to the European market this year as they face pressure from US tariffs. While many have seen strong results, the move has also ramped up competition across the region.

China's exports to the European Union surged 8.9 percent in the first 11 months from a year earlier, with exports to Germany and Italy both soaring 11 percent, according to customs data.

Over the past three years, Chinese vendors’ sales of brake discs on eBay’s UK platform have increased 16-fold, while shock absorber sales on the German platform have jumped nine times, according to data from the US e-retailer.

Chinese e-commerce giant Alibaba Group Holding reported a 57 percent surge in European orders this year and held its first small and medium enterprise summit, CoCreate, in Europe, attracting thousands of local business owners.

However, the growth is accompanied by fierce rivalry.

"Intense competition is inevitable," said Li Haoyu, deputy general manager of car parts maker Shenzhen Suncent Auto Parts Technology. However, since Europe has higher compliance thresholds than the US and other countries, competition tends to be more differentiated, allowing firms to find their niche.

Strict tax and environmental regulations in Europe make it difficult for rough-and-ready companies to grow there, said Jiang Zhenyang, chief executive officer of electronic product manufacturer Shenzhen Xinshengyang Technology, whose European business expanded nearly 90 percent this year.

"Even if you fully comply with the rules, products made in China still have relatively high profits," Jiang said.

However, challenges still exist. Europe is not a unified market like the US, so companies need to navigate cultural and regulatory differences and run more refined localized operations.

Newcomers should start by targeting niche product lines and gradually expand, said Li.

Firms could also enter the business-to-business sector, allowing local retailers to sell Chinese brands, said Wang Sijie, vice president of Chinese cross-border supply chain services provider Winit.

Looking ahead to 2026, most companies plan to maintain a foothold in the US while continuing to grow in Europe. Jiang plans to consolidate his company’s presence in the UK, Germany, France, Italy, and Spain while also exploring new markets such as Poland and the Netherlands.

Offline retail in Europe is still much bigger than online, meaning that there is still plenty of room for e-commerce growth, said Lin Wenkui, general manager of eBay Greater China. Lin expects cross-border online sales to keep rising.

Editor: Kim Taylor