2023年05月04日 星期四
Opinion
Shein and Temu,the Next TikTok?
Edited by GONG Qian

The App Temu, launched by Chinese e-commerce giant Pinduoduo in 2022, is keeping up momentum in the U.S. (PHOTO: VCG)

  After imposing a brutal ban on the short-video platform TikTok, the U.S. has its sight on another two fast-growing online shopping platforms that originate from China.

  In a report published on April 14 by the U.S.-China Economic and Security Review Commission (USCC), an official organ created by the U.S. Congress to report on the national security implications of the bilateral trade and economic relationship between the two countries, it detailed the "challenges" presented by Chinese fast fashion platforms, typically singling out Shein and Temu.

  "Like the multiple reports produced in the U.S., the USCC follows the years-old logic that everything from China is risk-laden. The listed risks are often the same, such as data and privacy," said TechWire Asia. According to the USCC report, Shein and Temu were accused of data risk, exploitation of trade loopholes, use of forced labor, violations of intellectual property rights and more.

  Risks of privacy data leakage could arise from the use of any social media apps. Georgia Institute of Technology professor Milton Mueller downplayed the danger of shared data, arguing that "the nationality of the company is a very crude and nationalistic criterion" in assessing security threats, AFP reported.

  Basically, all these attacks on Chinese tech companies are not really related to security but rather the U.S.' insecurity of being left behind with their local firms being left in the dust.

  China has big advantages in e-commerce including growing internet users, a completed transportation system, a vast logistics ecosystem and the largest consumer market. These enable Chinese e-commerce service and companies see rapid development in the past decade, which also make Chinese companies more competitive to expand overseas market.

  Shein was started in China, now based in Singapore, while Temu was launched by Chinese e-commerce giant Pinduoduo in 2022. Both have taken off in the U.S. Temu is keeping up momentum, the first quarter with downloads in the U.S. jumping 57 percent, said South China Morning Post. The App is currently the top-ranked free app in the U.S. on both Apple Store and Google Play.

  Shein accounted for 50 percent of all fast fashion sales in the U.S. as of November 2022, ahead of established brands like H&M at 16 percent and Zara at 13 percent, according to market researcher Bloomberg Second Measure.

  Barron has noted that the current emphasis on fast fashion highlights how the effects of the evolving U.S.-China relationship can extend beyond crucial sectors like semiconductors. But for those global players who seek for development in the right way in the U.S., Shein and Temu shouldn't be the next victim of U.S. suppression of Chinese companies amid worsening U.S.-China relations.

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