German media: Say no to Temu and Shein
29.02.2024
E-commerce companies from China such as Temu, Shein and Ali Express are expanding rapidly in Europe and the United States. The crazy promotion strategies of the above-mentioned companies have made local companies in Europe and the United States complain endlessly. In view of this, calls for the German government to introduce measures to curb unfair competition are getting louder.
(Deutsche Welle Chinese website) “Handelsblatt” commented that if Shein can be successfully listed this year, it is expected to break the financing record of Chinese companies listed overseas in recent years. But the current political climate may put the listing plan on hold. The comment, titled “Political IPO Plan,” reads:
“The U.S.’s opposition to Xiyin’s listing is getting louder and louder. For example, Republican Senator Rubio wrote in a letter to U.S. Securities and Exchange Commission Chairman Gensler: “We have reason to question a company with such relations with a hostile country. Close should companies raise capital in our capital markets’.
A U.S. congressional committee is also investigating Shein’s operating model. The company has grown rapidly over the past five years, with market observers estimating that the company’s share of fast fashion has reached one-fifth. In addition to data protection concerns, politicians are concerned about whether the company’s cotton comes from Xinjiang. If so, the company will not be allowed to export textiles to the United States under U.S. sanctions.
Rubio: Should a company with such close ties to a hostile country be raising money in our capital markets?
Prosecutors from 16 federal states in the United States urged the Securities and Exchange Commission to approve the company’s listing application only after ruling out the possibility of forced labor in Shein’s supply chain. Some politicians also criticized the company for taking advantage of U.S. customs exceptions to import tons of cheap clothing into the United States. The above-mentioned debate takes place in the 2024 election year, and the American republic and democracy will never use pro-China as a campaign strategy. “
In view of the huge political pressure to list in the United States, there are reports that Shein may consider the possibility of listing in London or Hong Kong. In order to create the impression that Shein is not a Chinese company, the company’s headquarters has also been moved to Singapore.
“But one fact is enough to illustrate Shein’s Chinese nature, because China’s cybersecurity agency CAC is investigating whether the information of Chinese employees, suppliers and partners will be leaked abroad in the case of Shein’s public offering in the United States. And in Washington It seems that this investigation just shows that a lot of information required for listing is not yet in place. From this point of view, whether in the United States or China, Shein’s listing plan has become a matter to be dealt with in the political arena.
After years of shelving the listing of Chinese companies in the United States, Shein was supposed to embark on an ice-breaking journey that would pave the way for TikTok and Ant Financial to go public. No matter how Shein’s listing plan ends up, it will have an impact on some financial markets and the development of the proposed listed company.
Temu’s marketing slogan in the US: Shop like a billionaire
In Germany, Temu and Shein have also caused controversy in political and business circles.Munich’s Courier-Zeitung wrote
“The example of German retailer Primark illustrates the problem. Against the background of rising energy prices and reduced consumer enthusiasm,Primark’s situation is already extremely difficult. And Shein took away a lot of online sales business.
So far, compared with companies such as Temu and Shein,Those local companies that comply with German and EU regulations are certainly at a competitive disadvantage, because these Chinese companies will take advantage of various opportunities to circumvent the constraints of existing laws. Trier, head of the foreign trade department of the German Chamber of Commerce and Industry, said that this trend will bring more and more problems to the German economy. “
Excerpts from other media do not necessarily represent Deutsche Welle’s positions or opinions.
©2024Deutsche Welle Copyright Statement: All contents of this article are protected by copyright law and may not be used without special authorization from Deutsche Welle. Any misconduct will result in recovery of damages and criminal prosecution.
2024-02-29 14:18:55
#German #media #Temu #Shein
