China Outside China
Raids, fines, and consumer backlash are challenging the ultracheap model that powered China’s fastest-growing e-commerce export.
China’s ultracheap e-commerce app, Temu, took the world by storm, topping download charts in 2023 and 2024. Now, the very tactics that fueled its rise are becoming its biggest problem.
On January 21, Turkish competition authorities raided Temu’s office in Istanbul, as part of an antitrust investigation. This was just weeks after European Union regulators raided Temu’s headquarters in Dublin, probing whether the company benefits from unfair Chinese state subsidies. In Poland, regulators have fined Temu for misleading discount advertisements, accusing the platform of inflating reference prices to exaggerate savings.
Temu’s unique business model — cheap goods delivered from China straight to buyers at factory-direct prices with free shipping — has brought the company under fire. The regulatory pushback marks a turning point for one of China’s most aggressive global exporters.
