Business | Schumpeter

Chinese apps are a mixed blessing for American big tech

How long will the advertising blitzes of Shein and Temu last?

An illustration showing a person wearing a hoodie with the American flag on and sewing the Chinese flag over the top of it.
Image: Brett Ryder

During the past year Shein and Temu, two ultra-fast-fashion upstarts famous both for $5 frocks and for playing down their Chinese heritage, have waged an internecine legal battle in America. Singapore-based Shein, the better-known of the two, threw down the frilly gauntlet, accusing Temu, which has invaded its territory in America, of stealing its trademarks and using social-media influencers to disparage it. Temu, which is based in Boston but owned by PDD, a Chinese e-commerce giant, struck back. It accused Shein of monopolistic practices like using its market power to force a network of 8,000-plus suppliers in China to refuse to do business with Temu. Then, on October 27th, Reuters reported that the firms had suspended hostilities.

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This article appeared in the Business section of the print edition under the headline “Chinese whispers ”

From the November 4th 2023 edition

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