Temu tops iOS downloads in US for second year amid increased scrutiny of Chinese companies
Jaque Silva | Nurphoto | Getty Images
Temu, the popular e-commerce app owned by China’s PDD Holdings, has topped the list of most downloaded free apps on the US iOS store for the second year in a row, highlights the resounding success that Chinese apps are achieving in the world’s largest consumer market.
ByteDance’s TikTok came third in the rankings despite doubts about its ability to continue operating in the US, while Temu competitor and fast fashion giant Shein came in 12th place.
Apple’s iOS accounts for more than 56% of the US mobile phone market data from StatCounter.
Temu, a low-cost carrier from China, first entered the US market in 2022. It took the market by storm, put pressure on heavyweight incumbent Amazon.
However, the Chinese company is facing increasing scrutiny from US officials and risks posed by tariffs that the Trump administration has promised to increase.
Review regulations and tariff risks
As companies like Temu and Shein lured American consumers with cheap goods and aggressive advertising, they also attracted the attention of Washington.
In September, the Biden administration announced one new proposal to prevent the “overuse and abuse” of the long-standing “de minimis” clause by companies such as Shein and Temu. This provision allows shipments valued under $800 to be exempt from certain import duties.
If Temu and Shein lose their de minimis exemptions, it could push up prices and reduce the competitiveness of Chinese companies, The experts have told CNBC.
Donald Trump’s impending return to the White House adds another layer of uncertainty as the president-elect has made limiting imports from China a key focus of his campaign. Trump has proposed tariffs as high as 60% to 100% on goods from China, although it is unclear whether he will follow through on his threat.
American officials are not the only ones concerned about Chinese imports flooding their domestic market.
In Southeast Asia, Vietnam and Indonesia impose many anti-dumping tariffs on Chinese goodsMeanwhile, Thailand recently announced measures to monitor cheap imports. Earlier this month, Vietnam bans Temu operations in the country just two months after the Chinese company established a local presence.
In a global outlook released on Friday, Nomura said its US economics team expected changes to de minimis rules to be a key trade priority for the Trump administration, perhaps second only to tax increases.
“This represents another major risk to China’s exports to the US in 2025,” the report said.
Nomura estimates that a US ban on all minimal imports from China could reduce the country’s annual export growth by 1.3% and drag down GDP growth by 0.2%.
