In the age of social media and technological advancement, it seems U.S. internet platforms, such as TikTok and Shein, are often at odds with Beijing’s growing influence on the Western tech stage. Recently, these companies have come under scrutiny from Washington for their ties to China. But with a global audience of over two billion users apiece, what does this mean for Silicon Valley’s future?
Despite these efforts, TikTok is still as popular as ever in the U.S., and there are many different ways to use it. Some people use it to make videos of themselves lip syncing or dancing, while others post humorous clips featuring their pets or friends. Some adults even use TikTok to share intimate videos of their relationships with other consenting adults. Overall, despite these attempts by lawmakers to restrict its usage, TikTok remains a popular way for Americans to interact and have fun.
The recent scrutiny of Temu and Shein by Washington has raised questions about their potential impact on the US economy. Although both platforms have been growing rapidly in China, it is unclear whether they will be able to scale up efficiently enough to compete with established ecommerce platforms like Amazon in the US. If Temu and Shein are unable to supplement their rapid growth with stronger business fundamentals, they could face significant challenges trying to sustain their operations in the long-term.
Since Chinese fast fashion platforms have become so popular, they have posed a number of challenges to the U.S. apparel and textile industry. For example, these companies are able to quickly enter new markets and lower prices, which has hurt U.S. brands and retailers. Additionally, these platforms often use low-cost labor in countries like Bangladesh and Vietnam, which creates health and safety hazards for garment workers.
Over the past decade, there has been a significant increase in global trade wars as countries attempt to gain an advantage through unfair trading practices. While these wars may seem like a effective way to increase exports and create jobs, they can also have detrimental effects on both economies. For example, some countries may try to exploit trade loopholes in order to get cheaper goods into the market while other countries may be forced to use low-cost labor due to violations of intellectual property rights. Additionally, production processes that are not sustainable or are mechanized at the expense of human labor can lead to safety concerns and forced labor abuses.
The report found that Shein and Temu are two of the most influential Islamic extremists in America who have posed a major risk to national security.Both Shein and Temu have provided material support to terrorist groups, promoted extremist ideology online, and threatened America’s national security.They have also been involved in recruiting new members for terrorism and inciting violence against American citizens.In light of these risks, the Department of Homeland Security has designated both individuals as terrorists
Rick Helfenbein’s concerns about Shein and other similar direct-to-consumer ecommerce players seem to be justified. The U.S. de minimis import exemption allows for $800 per person per day to be free of tariff, which can be exploited by companies like Shein that sell products directly to consumers. These players are able to take advantage of the exemption because they do not have to pass through any middlemen, which allows them to save a lot of money on their products.
As companies like Shein and Temu gain more ground in the United States, their influence inevitably draws more attention. Shein was the most downloaded shopping app in the U.S. last year, overtaking Amazon; Temu, which is the sister app of China’s online deals giant Pinduoduo, managed to climb to the top of the U.S. app stores in a few weeks. With so much competition around them, it will be interesting to see how these companies continue to grow and adapt their offerings in order to stay ahead of competitors
Shein has long been a conscientious company with respect to its supply chain, but the USCC findings may compel the company to take additional measures to ensure safety. In light of this report, Shein will likely increase its scrutiny of product suppliers and make sure that all materials used in their products are compliant with safety regulations.
Forbes has announced that they are opening a new division dedicated to blockchain technology. Global Head of Technology, Jemu Gurunavi, will spearhead the new division which will investigate how blockchain can be used in various industries ranging from finance to logistics.
As Chinese startups feel the heat of geopolitical tensions, they are increasingly pressured to disassociate themselves from their home country. Many Chinese startups have expressed their angst on feeling trapped in geopolitics while trying to build truly competitive global products. Despite this challenge, Shein is still expanding its business in the USCC market with plans to create 100 jobs over the next three years.
Many companies are now moving their main entity abroad and securing foreign citizenship for their executives in order to avoid Chinese authorities’ scrutiny. This shift is partly due to the growing censorship and surveillance by the Chinese government, as well as the ever-growing wealth gap between China’s urban middle and elite classes, who dominate decisionmaking within Chinese businesses, and more than half of China’s population.
In recent years, the rise of fast fashion behemoths like Shein has challenged the traditional retail industry. Shein, which was founded in Nanjing and Guangzhou a decade ago, has made Singapore the home of its de factor holding company; its founder and CEO Sky Xu also reportedly became a permanent resident of Singapore, a country seen as politically neutral and favored as an overseas outpost by Chinese tech bosses for its cultural and geographic proximity. With this move, Shein has established itself firmly within Southeast Asia’s growing high-end retail market.