The Chinese low-cost ecommerce giant reignites competition in the American market as Europe raises alarms over potential dumping practices.

August 2025 — Low-cost ecommerce platform Temu has reasserted itself in the United States market, resuming direct shipments from Chinese factories to American consumers in July following a trade truce between Washington and Beijing. The move marks a significant shift in the competitive landscape of global ecommerce, with Temu once again leveraging its vast network of Chinese suppliers and ultra-cheap logistics channels to offer products at rock-bottom prices.

A New Chapter in U.S.–China Trade
The resumption of Temu’s fully managed shipments comes after months of tense negotiations between the Biden administration and Chinese officials. In late June, both sides agreed to a limited truce, halting the escalation of tariffs and allowing Chinese ecommerce companies more flexibility in the American market. For Temu, the agreement has provided a green light to restore its signature model: managing orders end-to-end, from factory floors in Guangzhou and Shenzhen directly to U.S. doorsteps.

Suppliers and investors close to the company told the *Financial Times* that Temu’s logistics capacity has already returned to pre-2024 levels, with chartered flights and expanded shipping lanes bringing goods across the Pacific. At the same time, the company has doubled its U.S. advertising budget, targeting price-sensitive consumers facing ongoing inflation and cost-of-living pressures.

Aggressive Ad Spending
Shoppers across the U.S. have noticed Temu’s reemergence. From social media feeds to subway billboards, the company’s ubiquitous orange branding has returned with promises of “shopping like a billionaire” for a fraction of the cost. Market research firms estimate Temu has already surpassed its 2023 ad spend levels, with particular emphasis on short-form video campaigns aimed at younger demographics.

“Temu is betting that American consumers still crave bargain prices, even if it means longer delivery times and concerns over product quality,” said retail analyst Jennifer Marks. “The company is effectively exploiting an opening created by the trade thaw — but it’s also testing the limits of U.S. tolerance for cheap Chinese imports.”

European Concerns Over Dumping
While the U.S. has tentatively welcomed the truce, reactions in Europe have been far more cautious. The head of Poland’s largest online marketplace, Allegro, warned this month that Chinese ecommerce platforms — Temu included — are engaged in “systematic dumping” practices that threaten European small businesses. He urged the European Commission to impose stricter rules, including import duties and tighter consumer protection laws.

“Without intervention, European marketplaces will be hollowed out,” Allegro’s CEO said during an industry forum in Warsaw. “Chinese platforms are not playing by the same rules. They flood the market with underpriced goods while avoiding many of the compliance burdens European sellers face.”

The statement has reignited debate within the EU, where regulators are already under pressure to address the dominance of foreign platforms. Brussels insiders say discussions are underway to expand the scope of the Digital Services Act to include new measures specifically targeting ecommerce dumping.

Winners and Losers
For U.S. consumers, Temu’s return means cheaper goods during a period of economic strain. Household essentials, fashion items, and electronics can be found on the app at prices sometimes 40–60% lower than comparable U.S. retailers. But domestic competitors warn that such savings come at a cost. American small businesses, already squeezed by rising labor costs and supply chain disruptions, face yet another round of brutal price competition.

In Europe, the stakes are even higher. While Temu’s U.S. advertising blitz is designed to capture consumer enthusiasm, its long-term strategy may hinge on finding regulatory gaps in the EU. If European leaders fail to implement effective controls, local marketplaces could face declining market share, and entire sectors could be destabilized.

Geopolitical Dimensions
Temu’s resurgence also carries geopolitical implications. Analysts note that Beijing views the platform as a strategic export channel, reinforcing China’s role as the world’s factory floor. By supporting companies like Temu, China not only generates foreign revenue but also expands its soft power influence among Western consumers.

“The trade truce is not just about tariffs and goods,” said economist Martin Fischer. “It’s about reshaping consumer habits. Platforms like Temu are gateways for Chinese influence — every parcel delivered is a reminder of China’s centrality in the global economy.”

Looking Ahead
For now, Temu is riding high on a wave of renewed momentum. But the challenges ahead are considerable. U.S. regulators are monitoring the platform closely, and calls for stricter oversight are growing louder in Europe. Questions about labor standards, environmental sustainability, and product safety remain unresolved.

What seems clear is that Temu’s reentry into the American market will intensify global ecommerce competition. As Washington and Beijing enjoy a fragile trade peace, the real battle may unfold in Europe, where fears of dumping and unfair competition threaten to spark new regulatory battles.

In the meantime, consumers scrolling through Temu’s endless catalog of $5 gadgets and $10 dresses are unlikely to dwell on the geopolitical stakes. For them, the promise of ultra-low prices outweighs concerns about global trade imbalances — at least for now.