Overseas customers flock to Chinese online marketplaces

Tariff hikes

Hannah Evans, a university student in New York, said she prefers buying Chinese products, such as apparel, kitchen utensils and sporting equipment on Chinese e-commerce platforms as she has access to a dizzying array of choices at much cheaper prices.

"Using these apps is amazing because it is like buying from the factory of the world. You are buying directly from China. My phone case is from Taobao and it's only 9.9 yuan ($1.38)," she said.

The recent tariff increases by the US government have affected her shopping experience to some extent, she said. However, even with the "insane" tariffs on Chinese goods right now, if Americans buy directly from China, it's still going to be cheaper than if they go to a local store like Walmart, she said.

The Trump administration has decided to end the duty-free de minimis treatment for small packages and low-value shipments worth $800 or less from China. However, these measures have not deterred US consumers from purchasing Chinese products. Instead, they have sparked a surge in popularity for Chinese shopping apps.

Taobao has hit the top of Apple App Store's free download charts in 16 countries, while Chinese cross-border business-to-business e-commerce app DHgate has secured second spot in downloads on the Apple App Store in the US, just behind OpenAI's ChatGPT.

Experts said the meteoric rise of Chinese e-commerce apps in the US app marketplaces signals a potential paradigm shift in Americans' shopping habits, as they increasingly bypass traditional retailers and turn to international platforms for their purchases in the face of rising prices at home.

Sales of home appliances, outdoor sports equipment, pet supplies, healthcare and beauty products, and electronic devices have witnessed rapid growth in overseas markets, according to DHgate.

Founded in 2004, DHgate serves more than 100 million registered buyers across 225 countries and regions by connecting them with over 2.78 million sellers worldwide.

The company said its growth trajectory is not a temporary phenomenon, but the result of years of efforts to foster a trusted ecosystem with micro, small, and medium-sized enterprises and source manufacturers.

Market observers attribute DHgate's sudden popularity in the US to Chinese suppliers and manufacturers using the short-video platform TikTok to educate US consumers on the global luxury goods market amid increased US tariffs.

Many products, including clothing, handbags, and accessories that are assumed to be European-made, come from factories in China. Shoppers can buy these products directly from Chinese suppliers via e-commerce platforms like DHgate.

Cui Lili, a professor of digital economy at Shanghai University of Finance and Economics, said the popularity of Chinese e-commerce platforms in overseas markets indicates domestic brands have gained wide recognition abroad and will help the country move toward the high-end of the value chain.