South African retailers are complaining that Temu, the Chinese e-commerce platform that has grown rapidly in the country this year, has used import tax loopholes to undercut local companies, News24 reported (paywall).
Similar concerns have been raised about Shein, another Chinese online platform, News24 said.
Etienne Vlok, a national industrial policy officer for Southern African Clothing and Textile Workers Union, told the publication the government should consider urgent changes to tax rules on small items to ensure fair competition for local businesses.
The online shopping juggernaut backed by China’s PDD Holdings has offered huge discounts in South Africa since its launch in January.
Read: South Africa takes a Shein to China
The firm has expanded its global footprint to 49 countries and recently took out ads at the Super Bowl to try and sustain growth among US consumers.
It did not respond to a request for comment. — Mpho Hlakudi, (c) 2024 Bloomberg LP