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Temu, the favored e-commerce app owned by China’s PDD Holdings, topped Apple’s record of probably the most downloaded free apps on its U.S. iOS retailer for the second yr working, highlighting the huge success that Chinese language apps are having fun with on the planet’s largest client market.
ByteDance’s TikTok got here in third within the rating regardless of doubts over its capability to proceed working within the U.S., whereas Temu-competitor and fast-fashion large Shein got here in at quantity 12.
Apple’s iOS accounts for over 56% of U.S. cell phone market, in line with data from StatCounter.
Temu, which ships low-cost items from China, first entered the U.S. market in 2022. It has taken the market by storm, putting pressure on incumbent heavyweight Amazon.
The Chinese language firm, nonetheless, faces elevated scrutiny from U.S. officers, and dangers posed by tariffs which the incoming Trump administration has promised to lift.
Regulatory scrutiny, tariffs dangers
Because the likes of Temu and Shein entice American customers with low-cost items and aggressive promoting, they’ve additionally caught the eye of Washington.
In September, the Biden administration introduced a new proposal geared toward blocking the “overuse and abuse” of the long-standing “de minimis” provision by corporations similar to Shein and Temu. The supply permits shipments valued below $800 sure import responsibility exemptions.
If Temu and Shein have been to lose their de minimis exemption, it might push up costs and scale back the Chinese language corporations’ competitiveness, experts have told CNBC.
Donald Trump’s impending return to the White Home provides one other layer of uncertainty because the president-elect made curbing imports from China a serious focus of his marketing campaign. Trump has proposed tariffs as excessive as 60% to 100% on items from China, though it’s unclear whether or not he’ll perform his risk.
U.S. officers are usually not the one ones involved about Chinese language imports flooding their home markets.
In Southeast Asia, Vietnam and Indonesia have imposed a range of anti-dumping tariffs on Chinese goods, whereas Thailand just lately introduced measures to observe low-cost imports. Earlier this month, Vietnam banned Temu from working within the nation simply two months after the Chinese language firm arrange an area presence.
In a worldwide outlook report launched Friday, Nomura stated that its U.S. economics workforce expects modifications to the de minimis rule to be a key commerce precedence for the Trump administration, maybe second solely to climbing tariffs.
“This represents one other main draw back threat to China’s exports to the U.S. in 2025,” the report stated.
Nomura estimates a U.S. ban on all de minimis imports from China might scale back the latter’s annual export progress by 1.3% and drag GDP progress down by 0.2%.
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