German Media Urges Government to Act Against E-commerce Giants Temu and Shein
E-commerce companies from China such as Temu, Shein, and Ali Express are making waves in Europe and the United States, with their aggressive promotion strategies causing concern among local businesses. Calls for the German government to intervene and curb unfair competition are growing louder, as these Chinese companies continue to expand rapidly in the market.
According to a report by Deutsche Welle Chinese website, German media outlet Handelsblatt commented on the potential listing of Shein and the challenges it may face. The report highlighted the political opposition in the United States towards Shein’s listing, with concerns raised about the company’s ties to China and potential violations of U.S. sanctions.
In the U.S., prosecutors from 16 federal states have urged the Securities and Exchange Commission to thoroughly investigate Shein’s supply chain for any signs of forced labor. Additionally, concerns have been raised about the company’s use of customs exceptions to import cheap clothing into the country, further fueling political debate in the lead-up to the 2024 election year.
In response to the mounting pressure in the U.S., reports suggest that Shein is considering listing in London or Hong Kong to alleviate concerns about its Chinese background. However, the company’s move to Singapore to distance itself from China has not gone unnoticed, with Chinese cybersecurity agencies launching investigations into potential data leaks.
In Germany, similar controversies surround Temu and Shein, with local businesses struggling to compete against these companies that exploit loopholes in existing regulations. The German Chamber of Commerce and Industry has warned that this trend poses a significant threat to the country’s economy, as companies like Shein continue to dominate the online retail market.
As the debate around the expansion of Chinese e-commerce giants intensifies, it remains to be seen how governments and regulators will respond to the growing concerns raised by local businesses and media outlets. The future of Temu, Shein, and other Chinese companies in the Western market hangs in the balance, as they navigate complex political and regulatory challenges in their quest for global dominance.