Today, an interesting event match is going on. Two somewhat China-based ultra-fast-fashion upstarts, both providing e-commerce, are at war legally. Surprisingly, the fighting ring is in America. Shein, the blue corner, accused its competition Temu of stealing its trademark and using influencers to disparage it. And Temu the red corner accused Shein of course, of monopolistic practice. Here is another twist. These two Chinese rookies are bound up with some of America’s biggest technology firms.
In the point of Meta and Alphabet’s view, they are cash cows. Because they rake in handsome money from advertisements offered by the Chinese companies. By contrast, for Amazon , It stands to gain disadvantages. Amazon holds many China-based merchants and as both Shein and Temu are gaining momentum, some of those vendors possibly switch to their platforms. On top of that, Tik-tok is an additional challenger of its online shopping to be reckoned with.
However,It does not mean there are no obstacles on the path to their rising. No.1, Sino skeptics are at work in the Congress of America. It is trying to close the loophole that allows packages under $800 in value to enter the country duty free and scant inspection. Moreover ,No.2, their algorithms draw on oceans of data about American shoppers. No.3, China’s crackdown on firms is also burdensome.
All in all, It is unclear how the result of the legal battle will end and how it will work for America, though, one clear thing is that the rising Chinese firms are frustrating America’s tech giants. To its customers, it is a neatly wrapped gift.