Prime Highlights 

Temu Tops US iOS Downloads for Second Consecutive Year: The Chinese-owned e-commerce app, Temu, ranked as the most downloaded free app on the U.S. iOS store for 2024, marking the second consecutive year of such dominance. 

Temu’s success has prevailed despite competition from other Chinese apps such as ByteDance’s TikTok and Shein at 3rd and 12th places, respectively, showing continued popularity of Chinese apps in the U.S. 

It’s also increasingly being criticized by the U.S. government, which would, under the Biden administration, propose changing the “de minimis” provision so import duties would no longer be exempt, adding what may amount to considerable costs for Temu and other such companies. 

Key Background: 

Temu, an e-commerce platform owned by Chinese PDD Holdings, topped Apple’s list of the most downloaded free apps in the U.S. iOS store for the second consecutive year. The win demonstrates that Chinese apps are going strong in the American market despite growing concerns and regulatory scrutiny. Temu’s success follows its rapid rise since entering the U.S. market in 2022, challenging established players like Amazon with its low-cost products shipped directly from China. 

ByteDance’s TikTok is one of the most significant players in the Chinese app space, while Temu’s competitor, Shein, ranked 12th. Apple’s iOS platform holds over 56% of the U.S. mobile market, according to StatCounter, so these rankings are a significant barometer of app popularity. 

Despite its success, however, Temu is getting increased attention from U.S. authorities. The Biden administration has proposed new rules to the “de minimis” provision, a law that currently allows a certain low-value import amount below $800 to skip duties. This provision had greatly contributed to the very competitive pricing of Temu and Shein’s goods. When these changes will be implemented, it can drive up the cost of doing business for these Chinese companies, thus reducing the edge of these companies on the U.S. market. 

This situation gets complicated further with the incoming return of Donald Trump into the White House. During the course of his campaign, Trump made curbing imports from China a focus point by stating tariffs could reach 100%. This brings about uncertainty for Chinese companies working in the U.S. 

It’s not only the US where regulatory challenges lie; the Southeast Asian countries already faced and imposed anti-dumping tariffs on Chinese goods while Vietnam has recently banned Temu. Experts believe that at 2025, adjustments on the de minimis rule will be the hottest issue in trade under this administration, affecting China’s growth exportation to the US to an estimated 1.3% and a minus growth of 0.2% in GDP.