China’s cutthroat e-commerce tactic goes global as Shein-Temu war escalates

The battle between two of China’s largest e-commerce firms is heating up, as they take the cutthroat tactics that have long been around in the country to the international markets they both covet.

Chinese e-commerce deals giant Pinduoduo’s affiliate, Temu, which is aggressively expanding overseas, recently filed a court document in the US accusing fast fashion giant Shein of anti-competitive practices. Specifically, Temu claims that Shein has been “forcing exclusive dealing arrangements on clothing manufacturers.”

This allegation is reminiscent of Alibaba’s infamous “choosing one from two” policy, where vendors were asked to sell exclusively on Alibaba’s platforms and skip its archrival, Pinduoduo. As part of its sweeping crackdown on the tech industry, the Chinese government launched a probe into Alibaba in late 2020 over its monopolistic practices.

 

 

 

 

 

 

 

 

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