alt Hacker NewsGood point.
If I were a small seller I would just ignore this, like many sellers on Temu do. Before you get into trouble, someone must take notice that you did not register for the recipient fiefdom's protectionism racket. And if that happens, it is not sure that you really are in trouble. As with the GDPR, this kind of regulation is almost unenforcable in practice.
It is enforceable and the financial punishment is severe. There's no US’s LLC equivalent in EU, you basically only have C-Corp/Inc. equivalents (much more expensive to start and operate, both because of accounting and corporation income tax), so most small sellers in EU end up fully liable with their own wealth for the ridiculous up to 200,000€ penalties.
Chinese sellers don’t care, sure, but if you live in EU you do care.
That said while the financial penalties are in practice still not common they are chilling nevertheless.
However, EU is also now starting marketplace level enforcement, so in practice even those Chinese sellers will not be able to sell anything without registration.