American viewers of the last Super Bowl, in February, were treated to astonishing publicity. We saw a woman scrolling through the screen a lot of chic and inexpensive outfits on the sales application called Temu. From this endless catalog of clothing at unbeatable prices emanates a feeling of opulence, which is summed up in its slogan: “I feel so rich, I feel like a billionaire.” Launched in September, Temu is now the most downloaded iPhone application in the United States. A feat for this young brand established in Boston. Even more when we know that Temu actually comes from China.
The period is decisive for many Chinese companies present in the West. On the one hand, brands from China have never been so popular in the United States. Temu is hot on the heels of video editing app CapCut and the hugely time-consuming TikTok in iPhone downloads. On the shopping side, Shein ranks ahead of Amazon and could be among the biggest IPOs in New York this year. On the other hand, Western distrust continues to grow with regard to Chinese companies, against the backdrop of exacerbated geopolitical tensions between Beijing and the West.
Propaganda Suspicions
Chinese telecom giant Huawei is now banned in the United States and was nearly banned by German mobile operators. A fate that may also await TikTok. In the wake of the United States, several countries are considering a complete ban on the video-sharing application on the grounds that the Chinese government would use it to spread anti-Western propaganda or to collect personal data from users – two accusations that TikTok defends itself against.
Chinese companies that court rich Western customers find themselves in a delicate situation: how to develop their activity in countries where your presence is less and less well seen? Shein, Temu and the reprobate TikTok are implementing strategies today that have several commonalities. On their success depends the future of Chinese trade in the West.
The cheap of the 1980s
It was in the 1980s that China began to impose itself in the world economy: foreigners invested heavily in Chinese factories which exported cheap products to Western countries, where they were almost exclusively sold by distributors. such as Walmart supermarkets or Western brands producing in China. Then, in the mid-2000s, Chinese companies began to establish themselves in foreign markets.
Before Washington clipped its wings, Huawei marketed its own network connection system and handsets throughout the West. Other Chinese heavyweights, such as home appliance maker Haier, were buying up and developing Western brands – General Electric home appliances in Haier’s case. Between 2011 and 2021, Chinese companies acquired almost $90 billion [81,5 milliards d’euros] foreign brands and distributors, according to data provider Refinitiv.
Bad reputation
The trend has slowed somewhat in recent years. In 2022, Chinese companies only spent $400 million [362 millions d’euros] in takeovers of foreign brands. Chinese power is worried about these capital outflows, while Western governments
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Source of the article
The Economist (London)
Great institution of the British press, The Economist, founded in 1843 by a Scottish hatter, is the bible for anyone interested in international affairs. Openly liberal, he generally defends free trade, globalization, immigration and cultural liberalism. It is printed in six countries, and 85% of its sales are outside the UK.
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2023-05-16 03:00:26
#Trade #United #States #Chinese #applications #camouflage #mode
