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Why China's Temu and Shein are a big regulatory headache

26 1
02.03.2025

Every day, millions of cheap products bought online are mailed directly to consumers in the United States, European Union and elsewhere, from China. But unlike most imports, they are allowed to circumvent customs procedures.

In just three short years, Temu has grown into a major rival to Amazon and other Western online shopping platforms, offering up to ten million products from clothes to toys, electronics to beauty treatments, at ultra-low prices.

In the first nine months of 2024, Temu achieved revenues of $40.3 billion (€38.5 billion), a nearly 80% increase on the same period in the previous year. A YouGov poll published in March last year found that nearly nine in ten Americans are aware of Temu, while a quarter say they would buy through the Chinese platform again.

Another platform, Shein, which specializes in fast fashion aimed at younger age groups, achieved a 10-year headstart on Temu's direct-to-consumer model. It cut out middlemen fashion retailers to overtake brands like H&M and Zara in sales. Last year, Shein reached $38 billion in sales, a 19% year-on-year increase, according to British business newspaper Financial Times.

The Chinese platforms are taking advantage of a little-known

© Deutsche Welle