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Shein, Temu, and Chinese e-Commerce: Data Risks, Sourcing Violations, and Trade Loopholes

04/14/2023
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This Issue Brief details the challenges posed by Chinese “fast fashion” platforms, including exploitation of trade loopholes; concerns about production processes, sourcing relationships, product safety, and use of forced labor; and violations of intellectual property rights. These platforms primarily rely on U.S. consumers downloading and using Chinese apps to curate and deliver products.

The primary focus of this Issue Brief is first mover Shein, about which the most data is available, with additional discussion of Temu, which has rapidly expanded its U.S. market presence in the past year. These firms' commercial success has encouraged both established Chinese e-commerce platforms and startups to copy its model, posing risks and challenges to U.S. regulations, laws, and principles of market access.

Tags
Trade,
Intellectual property,
Data privacy,
Forced labor,
Technology,
Economics