US Takes Action Against Cheap Chinese Imports
The US has announced plans to crack down on cheap Chinese imports, particularly those from companies like Temu and Shein. The move comes as the US seeks to level the playing field for American businesses and workers.
End of Exemption for Low-Value Shipments
Under the proposed rule, the US will no longer exempt imports valued at $800 or less from tariffs. This exemption, known as the “de minimis” rule, has been used by Chinese companies to flood the US market with cheap products. According to the White House, the number of these shipments has increased from 140 million per year to over 1 billion per year, with Chinese companies being the main beneficiaries.
Increased Reporting Requirements
The new rules will also require importers to provide more detailed information about their shipments, making it easier for US Customs and Border Protection agents to identify and stop dangerous or illicit products.
Reaction from Chinese Companies
Shein has reacted to the US measure by reaffirming its commitment to creating a level and transparent playing field. Temu, on the other hand, has stated that its growth does not depend on the exemption and that it is reviewing the new rules.
EU Also Cracks Down on Cheap Chinese Imports
The European Union is also taking steps to control the influx of cheap Chinese products. The European Commission is studying the possibility of applying tariffs to low-cost products from China, particularly those from platforms like Temu and Shein.
Current EU Regulations
Currently, products valued at €150 or less can be imported into the EU duty-free from non-EU countries. However, the EU has reported that sales of these platforms in Europe have been doubling year after year, with over 350,000 products purchased in April alone.
Impact on Chinese Companies
The US and EU measures are likely to have a significant impact on Chinese companies like Temu and Shein, which have grown rapidly in recent years. The companies will need to adapt to the new regulations and find ways to remain competitive in the US and EU markets.