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☆ Temu is baiting Amazon with 90% Prime Day discounts. Amazon wants nothing to do with the Chinese site.
▼ + stars: | 2023-07-12 | by ( Jennifer Ortakales Dawkins | ) www.businessinsider.com time to read: +3 min

Temu may have better deals than Amazon during Prime Day. Prime Day shoppers may find lower prices on Temu. On Temu, it seems like every day is "Prime Day." Temu added nearly 10 million new daily users this year and now has about 16.5 million users, Intelligence firm GWS found. The firm also saw a decline in Amazon's daily app from 54 million to 46 million users daily.

Persons: isn't, Temu, GWS, Jason Del Rey, Paul Carter Organizations: Prime, Reuters, Amazon, PDD Holdings, Bloomberg, Intelligence, Bank of America, Walmart Locations: GVM

☆ Startup e-commerce platform Temu expands to Japan
▼ + stars: | 2023-07-06 | by ( ) www.reuters.com time to read: +1 min

SHANGHAI, July 6 (Reuters) - Ultra low-cost e-commerce platform Temu, owned by PDD Holdings (PDD.O), has started selling to Japan, marking its first foray into the Asian market. The marketplace, the sister site of Chinese discount e-commerce platform Pinduoduo, ships everything from clothing to electronics and home goods, mainly from Chinese merchants to customers overseas at rock bottom prices. A drop-down menu on Temu's website confirms Japan is one of the countries it now ships to. Temu and PDD Holdings did not immediately respond to a request for comment on its recent expansion or future plans. Vion Zhi Voon Yau, head of research at consultancy Momentum Works, described Japan as an "attractive, affluent" market for Temu.

Persons: Vion Zhi Voon Yau, Casey Hall, Fanny Potkin, Emelia Sithole Organizations: PDD Holdings, Japan, Momentum Works, Temu, Thomson Locations: SHANGHAI, Japan, United States, Boston

It is also looking to hire a lawyer with a specialty in trade compliance to help Temu create a protocol for screening merchandise, another posting showed. The U.S. House Select Committee on the China Communist Party in May launched an investigation into retailers' connections to forced labor in China's Xinjiang region, including any efforts to comply with the Uyghur Forced Labor Prevention Act. The committee last week released preliminary findings stating that Temu "does not have any system to ensure compliance" with the act. Temu's 80,000 "suppliers agree to boilerplate terms and conditions that prohibit the use of forced labor," the report said. Rights groups accuse Beijing of abuses including forced labor and placing 1 million or more Uyghurs - a mainly Muslim ethnic group - in internment camps in Xinjiang.

Persons: Temu, Shein, Arriana McLymore, Jamie Freed Organizations: YORK, PDD Holdings, New Zealand, Reuters, U.S, China Communist Party, Uyghur, Labor, Thomson Locations: U.S, Xinjiang, China, Canada, Australia, New, China's Xinjiang, United States, Xingiang, Beijing, New York

☆ Congress Spotlights ‘Serious’ Forced Labor Concerns With Chinese Shopping Sites
▼ + stars: | 2023-06-22 | by ( Ana Swanson | Claire Fu | ) www.nytimes.com time to read: +1 min

The number of de minimis packages entering the United States has exploded in recent years, to 720 million in 2021, from 220 million in 2016. Based on data submitted by the companies, the report said that Temu and Shein alone are likely responsible for almost 600,000 packages shipped to the United States daily under the de minimis rule. Among teenagers, Shein was the third most popular e-commerce site behind Amazon and Nike, according to a Piper Sandler report issued this spring. As their popularity has grown, so has congressional scrutiny of the firms given their ties to China. Temu, which is based in Boston, is a subsidiary of PDD Holdings, which moved its headquarters to Ireland from China this year.

Persons: Earl Blumenauer, ”, Shein, Piper Sandler Organizations: United States, Customs, Nike, PDD Holdings Locations: United States, United, China, Oregon, Singapore, Boston, Ireland

Fed Governor Christopher Waller warned on Friday "core inflation is not coming down like I thought it would." Richmond Fed President Thomas Barkin said he was "comfortable" with further rate increases given that inflation was still not on the path back to 2%. Markets now await comments from more Fed officials including Fed Vice Chair Michael Barr later in the day, and Fed Chair Jerome Powell's semiannual monetary policy testimony to the U.S. House Financial Affairs Committee on Wednesday. Adding to the dour mood, China cut its benchmark lending rates by a smaller-than-expected 10 basis points. U.S.-listed shares of Chinese companies including Alibaba Group , JD.com and PDD Holdings (PDD.O) fell between 1% and 6% in premarket trading.

Persons: Eli Lilly, Christopher Waller, Thomas Barkin, CMEGroup's, Waller, Barkin, Michael Barr, Jerome Powell's, Powell, Hogan, Daniel Zhang, Shristi Achar, Shubham Batra, Johann M, Vinay Dwivedi Organizations: Therapeutics, Dow, Nasdaq, Federal Reserve, Richmond Fed, Traders, Microsoft, U.S . House Financial, Housing, Capitol, Riley, Fed, Alibaba, PDD Holdings, Dow e, Adobe Inc, Ford, General Motors, Tesla Inc, Dice Therapeutics, Thomson Locations: China, U.S, Bengaluru

Eight of the 11 S&P 500 sub-sectors were in the red, with the energy index (.SPNY) leading declines. U.S. markets ended lower on Friday as comments from Fed officials curtailed optimism that the central bank was nearing the end of its aggressive interest rate hikes. Traders now see a 72% chance of Fed hiking its key benchmark rates by 25 basis points in July, according to CMEGroup's Fedwatch Tool. Declining issues outnumbered advancers for a 2.43-to-1 ratio on the NYSE and a 1.82-to-1 ratio on the Nasdaq. The S&P index recorded 11 new 52-week highs and no new low, while the Nasdaq recorded 38 new highs and 40 new lows.

Persons: Eli Lilly, Tesla, Rivian, homebuilding, Sam Stovall, CMEGroup's, Michael Barr, Jerome Powell's, Morgan Stanley, Daniel Zhang, advancers, Shristi Achar, Shubham Batra, Johann M, Vinay Dwivedi, Shounak Organizations: Therapeutics, Nike, Dow, Nasdaq, U.S . Federal Reserve, CFRA Research, Tesla Inc, Reuters, EV, U.S . House Financial, PayPal Holdings, KKR & Co, Alibaba, PDD Holdings, Dow Jones, Adobe Inc, Dice Therapeutics, NYSE, Thomson Locations: U.S, Europe, China, Bengaluru

☆ Jack Ma reportedly proposed a restructure at Alibaba, and it has echoes of what's been happening at Meta
▼ + stars: | 2023-06-20 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Alibaba cofounder Jack Ma held a small group meeting with top company execs in May, per LatePost. Alibaba cofounder Jack Ma retired from the company in 2019, but he was back advising the company in late May, per LatePost, a Chinese media outlet. Ma held a small group meeting with executives from the company's e-commerce platforms Taobao and Tmall, LatePost reported on Monday, citing unnamed Alibaba employees. Ma suggested the two Alibaba e-commerce platforms cut out management layers, per the LatePost report. And on Saturday, Ma attended the finals of the Alibaba Global Mathematics Competition in Hangzhou, where Alibaba is based.

Persons: Jack Ma, Ma, LatePost, Alibaba, Mark Zuckerberg's, Michael Evans, Jack Organizations: execs, Meta, Michelin, University of Hong, CNBC Locations: Silicon Valley, China, Hong Kong, Singapore, Douyin, Bangkok, Thai, Hangzhou, University of Hong Kong, Japan, Tokyo

The Chinese e-commerce giant saw sales rise 6-8% over the 618 festival period that ran from late May through to Sunday evening, according to a client note from Citi analysts. The festival, named after the founding date of JD.com but embraced by all e-commerce platforms, is a key barometer of Chinese consumer spending. JD.com has said it will not release its GMV for the festival period this year, only noting that sales hit a record - a milestone which was expected. Alibaba has also stopped releasing GMV figures for the so-called Singles Day shopping festival period in November in the face of slowing sales. Goldman Sachs analysts said in a client note that JD.com sales during 618 "slightly" exceeded expectations, while Jefferies analysts said the event "surpassed expectations and set new records."

Persons: brokerages, Syntun, Alibaba, JD.com, Goldman Sachs, Jefferies, Casey, Sophie Yu, Edwina Gibbs, Susan Fenton Organizations: HK, Citi, Alibaba, PDD Holdings, Casey Hall, Thomson Locations: SHANGHAI, Shanghai, Beijing

[1/5] People wait for bus near a billboard of JD.com advertisement for the "618" shopping festival, in Beijing, China June 12, 2023. Retail sales growth in May slowed from the previous month, missing forecasts. In 2022 China's online retail sales amounted to 13.8 trillion yuan ($1.93 trillion), according to Ministry of Commerce data. "Everyone's making excuses but at the end of the day, it's a super-soft retail market." Last year, JD.com posted 10% annual growth in total 618 sales, its slowest ever.

Persons: Tingshu Wang, Josh Gardner, JD.com, Trudy Dai, Jason Yu, Kantar, Yu, Iris Zhang, Gardner, Data, Casey Hall, Sophie Yu, Marius Zaharia Organizations: REUTERS, HK, of Commerce, Kungfu, Burberry, Apple, Alibaba, Jefferies, Citi, Thomson Locations: Beijing, China, SHANGHAI, Tmall

☆ China e-commerce shipments would lose US tariff exemption under proposed law
▼ + stars: | 2023-06-14 | by ( Katherine Masters | ) www.reuters.com time to read: +2 min

The bill would ban such shipments from China immediately upon enactment, sponsor Republican Senator Bill Cassidy said. Ecommerce sellers such as China-founded, Singapore-based Shein and Temu, a rival owned by PDD Holdings Inc (PDD.O) that operates the Chinese ecommerce site Pinduoduo, are big beneficiaries of the exemption. De minimis shipments have drawn attention at least since 2019, when the U.S. Consumer Product Safety Commission reported it struggled to catch unsafe imports because of the heavy volume of low-value packages. Such shipments rose to 685.5 million in 2022 compared with 410.5 million in 2018, U.S. customs data showed. Under the bill, countries other than China and Russia could keep the exemption by adopting the $800 threshold for their own tariff-free imports.

Persons: Dado Ruvic, Bill Cassidy, minimis, Temu, De, J.D, Vance, Tammy Baldwin, Earl Blumenauer, Katherine Masters, Cynthia Osterman Organizations: REUTERS, PDD Holdings, U.S . Consumer Product Safety, Democratic, FedEx, UPS, DHL, Thomson Locations: U.S, China, Singapore, Xingiang, Xinjiang, Russia

☆ China e-commerce shipments would lose U.S. tariff exemption under proposed law
▼ + stars: | 2023-06-14 | by ( ) www.cnbc.com time to read: +2 min

A bipartisan group of U.S. lawmakers planned to introduce a bill on Wednesday to eliminate a tariff exemption widely used by e-commerce sellers to send orders from China to U.S. shoppers, one of the sponsors said. The bill would ban such shipments from China immediately upon enactment, sponsor Republican Senator Bill Cassidy said. E-commerce sellers such as China-founded, Singapore-based Shein and Temu, a rival owned by PDD Holdings that operates the Chinese ecommerce site Pinduoduo, are big beneficiaries of the exemption. De minimis shipments have drawn attention at least since 2019, when the U.S. Consumer Product Safety Commission reported it struggled to catch unsafe imports because of the heavy volume of low-value packages. Under the bill, countries other than China and Russia could keep the exemption by adopting the $800 threshold for their own tariff-free imports.

Persons: Bill Cassidy, Temu, De, J.D, Vance, Tammy Baldwin, Earl Blumenauer Organizations: PDD Holdings, U.S . Consumer Product Safety, Democratic, FedEx, UPS, DHL Locations: Washington ,, U.S, China, Singapore, Xingiang, Xinjiang, Russia

According to Amazon, Temu, an e-commerce marketplace that launched in September, does not meet its "strict qualification standards" for Amazon's fair pricing policy. That means some low-priced general merchandise on Temu, owned by PDD Holdings, could beat out prices offered by Amazon's marketplace sellers. But Amazon is wary of engaging in a price war with a marketplace that it says is not reputable. Much of the merchandise sold on Temu is from vendors and suppliers based in China. The pending U.S. lawsuits are among the first legal battles between Amazon sellers and Temu, according to court filings.

Persons: Temu, Mandell Menkes, Feixiang Wang, Arriana McLymore, Vanessa O'Connell, Deepa Babington Organizations: YORK, PDD Holdings, Amazon, MaiBo Technology Company, Reuters, Northern District of, Shenzhen Kangmingcheng Technology, Thomson Locations: China, U.S, Northern District, Northern District of Illinois, Shenzhen

Economic challenges and geopolitical tensions have made fundraising and investment difficult, and eaten into global venture funds' returns. "It has become increasingly complex to run a decentralized global investment business," Sequoia said in the statement. Sequoia China will retain its current Chinese name and adopt the name HongShan in English, while Sequoia India and Southeast Asia will become Peak XV Partners, the firm said. Sequoia started to invest in local companies in China, India and Southeast Asia more than 15 years ago, according to the statement. Sequoia China, founded and led by former entrepreneur and investment banker Shen, has invested in more than 1,200 companies in sectors ranging from technology to healthcare.

Persons: Sequoia, Roelof Botha, Neil Shen, Shailendra Singh, Shen, Biden, Weiheng Chen, Wilson, Steven Yu, Yu, Trump, we've, Singh, Oyo, Kane Wu, Julie Zhu, Sriram, Roxanne Liu, Krystal Hu, Bernadette Baum, Mark Potter, Paul Simao Organizations: Sequoia Capital, Economic, Investment, Sequoia, XV Partners, HK, PDD Holdings, Reuters, Global Law, China -, Thomson Locations: HONG KONG, China, India, Southeast Asia, COVID, Sequoia China, Sequoia India, Shanghai, U.S, China - U.S, Hong Kong, Mumbai, Beijing, San Francisco

☆ Sequoia to separate China, India and Southeast Asia operations by March 2024
▼ + stars: | 2023-06-06 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, June 6 (Reuters) - Global venture capital giant Sequoia announced Tuesday that it is planning to separate its China, and India and Southeast Asia businesses into two independent firms. The China and India and Southeast Asia businesses will become independent and distinct with separate brands, by March 31, 2024, Sequoia said in a statement signed by managing partners Roelof Botha, China head Neil Shen and India head Shailendra Singh. Sequoia China will retain its current Chinese name and adopt the name HongShan in English, while Sequoia India and Southeast Asia will become Peak XV Partners, the firm said. The firm partnered with local leaders in China and India and Southeast Asia over 15 years ago, according to the statement. Singh and his team raised a $2.5 billion India and Southeast Asia fund last year, its biggest yet.

Persons: Sequoia, Roelof Botha, Neil Shen, Shailendra Singh, Shen, Singh, Kane Wu, Julie Zhu, Sriram, Louise Heavens, Bernadette Baum Organizations: Sequoia, Sequoia Capital, XV Partners, HK, PDD Holdings, Thomson Locations: HONG KONG, China, India, Southeast Asia, Europe, Sequoia China, Sequoia India, Oyo, Mumbai

☆ Chinese tech entrepreneurs keen to 'de-China' as tensions with US soar
▼ + stars: | 2023-05-30 | by ( David Kirton | ) www.reuters.com time to read: +7 min

But he's dismayed by the U.S.-China trade spats and the restrictions on a growing number of Chinese companies that have been imposed, or are being proposed, by U.S. lawmakers. "It's very unfair," he said, lamenting that competitors from other countries did not face similar issues when trying to expand into the United States. Reuters spoke to seven tech entrepreneurs from mainland China, most of them educated overseas, who would like to expand their businesses in the United States. Geopolitical tensions have meant a far less friendly atmosphere for mainland Chinese companies wanting to operate or gain funding in the United States, the entrepreneurs and consultants say. The U.S. Commerce Department did not respond to a request for comment on attitudes towards Chinese companies within the United States.

Persons: Florence Lo, Ryan, Trump, Joe Biden, Major flashpoints, James McGregor, Xi, Wilson, Chris Pereira, Shein, PDD, Pereira, Tommy, David Kirton, Eduardo Baptista, Casey, Brenda Goh, Edwina Gibbs Organizations: REUTERS, Huawei, U.S ., U.S, Micron Technology, Washington DC, Chinese Communist Party, Greater, APCO Worldwide, U.S . Commerce Department, Reuters, of Information, American Ecosystem Institute . Companies, PDD Holdings, U.S . Customs, Border Protection, Casey Hall, Thomson Locations: China, SHENZHEN, U.S, Washington, United States, Shenzhen, East Asia, North America, Hong Kong, Canada, Japan, Singapore, Montana, Greater China, Beijing, China's, Shanghai, Dublin

☆ Chinese apps remain hugely popular in the U.S. despite efforts to ban TikTok
▼ + stars: | 2023-05-29 | by ( Lauren Feiner | ) www.cnbc.com time to read: +15 min

But while TikTok has been the one in the spotlight, other Chinese apps that present similar issues are also experiencing massive popularity in the U.S. Gorman said as the U.S. considers the threat posed by TikTok, it will also need to develop a framework for how to evaluate the relative risk of Chinese apps. But in the meantime, U.S. consumers continue to turn to Chinese apps. "And then of course, there's the early growth of Lemon8, which suggests that the appetite for Chinese apps in the U.S. is still growing." And some say the most effective long-term solution for curbing the use of Chinese apps may be fostering an environment for robust alternatives to grow.

☆ Alibaba misses revenue estimate, approves cloud unit spinoff
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +3 min

"We would love nothing more than to see one of these little Alibabas...becoming another big Alibaba, as big as the group company is right now," said Alibaba Group chairman Daniel Zhang on an earnings call. Alibaba logged revenue of 208.20 billion yuan ($30.12 billion) for the three months ended in March, compared with a Refinitiv consensus estimate of 210.3 billion yuan. Net income attributable to ordinary shareholders was 23.52 billion yuan for the quarter, reversing a year earlier loss of 16.24 billion yuan. Revenue for Alibaba's cloud division in the recent quarter was 18.6 billion yuan, down 2% year-on-year. The company has opened up registration to test the technology to enterprise customers of Alibaba Cloud.

☆ Alibaba fourth-quarter revenue rises 2%
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +1 min

May 18 (Reuters) - China's Alibaba Group Holding Ltd (9988.HK), said on Thursday that fourth-quarter revenue climbed 2%, missing expectations. The 208.20 billion yuan ($30.12 billion) logged for the three months ended in March compares with a Refinitiv consensus estimate of 210.3 billion yuan drawn from 26 analysts. Chinese consumer spending has gained some momentum since the country abandoned draconian zero-COVID policies late last year, but still remains relatively muted amid a wobbly economic recovery. Net income attributable to ordinary shareholders was 23.52 billion yuan, compared with a loss of 16.24 billion yuan. Revenue for the full year climbed 2% to 868.69 billion yuan, marking its slowest rate of growth since the company went public in 2014.

☆ Temu accused of data risks after sister app was suspended for malware
▼ + stars: | 2023-05-17 | by ( Sheila Chiang | ) www.cnbc.com time to read: +7 min

Stefani Reynolds | Afp | Getty ImagesThe U.S. has accused discount shopping site Temu of possible data risks after its Chinese sister app was pulled from Google's app store over "malware" — but analysts say they're not that worried. Google called it an "identified malicious app" and urged users to uninstall the Pinduoduo app, but the Chinese online retailer denied those claims. Kevin Reed chief information security officer, Acronis"There should be no need for biometric data to be stored on an e-commerce website or app. Data risksIn a report on Chinese "fast fashion" platforms published in April, the U.S.-China Economic and Security Review Commission accused Temu and Shein of posing possible data risks. Shein and Temu "primarily rely on U.S. consumers downloading and using Chinese apps to curate and deliver products," said the report.

☆ Tiger Global makes new bets on Apple and Taiwan Semi in the first quarter
▼ + stars: | 2023-05-16 | by ( Samantha Subin | ) www.cnbc.com time to read: +1 min

Tiger Global Management made a new bet on Apple in the first quarter, while expanding positions in some major technology players that posted a strong start to the year. Tiger also upped its stake in technology leaders Alphabet, Amazon and Microsoft in the first quarter. The latest securities filings also showed Tiger exited small positions in Roblox , Warby Parker and Pinduoduo parent PDD Holdings . Coleman founded Tiger Global in 2001. He is widely known as one of the Tiger Cub hedge fund managers who worked at Tiger Management under Julian Robertson.

☆ This is what you need to know about ultra-cheap Chinese shopping app Temu, which sells a huge variety of weird things — and has some wondering if it's for real
▼ + stars: | 2023-05-08 | by ( Grace Dean | Mary Hanbury | ) www.businessinsider.com time to read: +11 min

It's listed as the top free app in both the Google Play store and the Apple App Store, ahead of TikTok, Amazon, and Instagram. These cost savings can then be passed on to the consumer, a spokesperson for Temu told Insider. But for the average North American shopper, such low prices can actually be disconcerting, especially when they don't know much about Temu. A spokesperson for Temu told Insider that it uses its parent company's supply chain and logistics network to ship these items. Read more: I ordered my first 4 items off Chinese e-commerce app Temu and came away annoyed with the dozens of marketing emails sent after making a single purchase

☆ PDD, Shein, Binance: These hugely successful companies were born in China. They don't want you to know that
▼ + stars: | 2023-05-04 | by ( Michelle Toh | ) edition.cnn.com time to read: +10 min

Hong Kong CNN —Binance, the world’s largest cryptocurrency exchange, doesn’t want to be called a Chinese company. “Our opposition in the West bends over backward to paint us as a ‘Chinese company,’” he wrote in a blog post last September. Zhao has been vocal about how he feels his firm is misrepresented as a "Chinese company." The same concern could, in theory, apply to any Chinese company. TikTok CEO Shou Chew testifying before US Congress in March.

☆ Tech giant PDD Holdings, parent of Pinduoduo and Temu, moves headquarters from China to Ireland
▼ + stars: | 2023-05-04 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +2 min

PDD Holdings, the parent company of Temu and Pinduoduo, has moved its headquarters from China to Dublin, Ireland. PDD Holdings , the parent firm of e-commerce sites Temu and Pinduoduo, moved its headquarters from China to Ireland, underscoring the Chinese tech giant's international push. PDD Holdings started off as Pinduoduo, the fast-growing discount e-commerce firm in China. The company rebranded this year to PDD Holdings, creating a parent company for Pinduoduo and Temu, its international e-commerce effort. Meta and Apple are among a number of U.S. tech giants with European headquarters in Ireland.

☆ House China committee targets top clothing brands in forced labor inquiry
▼ + stars: | 2023-05-03 | by ( Chelsey Cox | ) www.cnbc.com time to read: +3 min

A shopper carries a bag of Nike merchandise along the Magnificent Mile shopping district on December 21, 2022 in Chicago, Illinois. WASHINGTON — A House committee examining the U.S. government's economic relationship with China is asking some of the world's largest clothing companies for information about the use of forced labor during production — a potential violation of U.S. trade law. Lawmakers asked retailers Temu, Shein, Nike and Adidas North America about the use of materials and labor sourced from the Xinjiang Uyghur Autonomous region of China, according to letters sent to company leaders on Tuesday. Such practices would constitute violations of the 2021 Uyghur Forced Labor Prevention Act, according to the lawmakers. The inquiries also follow a March hearing of the committee that included an expert assessment finding that U.S. companies finance "state-sponsored forced labor programs in the Uyghur region."

☆ Congress presses Chinese fast-fashion giant Shein on forced labor
▼ + stars: | 2023-05-02 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +2 min

New York CNN —US Congress is stepping up the pressure on Chinese fast-fashion giant Shein. The United States has banned all imports from the Xinjiang region over concerns of the use of forced labor. Lawmakers “are demanding transparency and seeking independent verification — free from state influence — that the company does not use Uyghur forced labor,” according to the letter. A Shein spokesperson told CNN that the company has no suppliers in the Xinjiang region and it has zero tolerance for forced labor. The letter illustrates how Congress is scrutinizing Shein and rival fast-fashion app Temu amid their surging popularity in the United States.

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