From the Trading Post to Amazon · Episode 11 of 12 · 19 min
Shein and Temu: How Chinese Apps Deleted the Retail Shelf
Shein and Temu skipped the shelf entirely: test a hundred units, scale what sells, and ship from the factory to an American doorstep. The episode explains the consumer-to-manufacturer model and the de minimis rule that let parcels under $800 enter duty-free, then its closure for China and the world in 2025. It also covers algorithmic merchandising, forced-labor and safety questions, and whether a foreign app disciplines the domestic giants or adds a bigger one.
Who's who
- Jack MaFounded Alibaba in 1999
- Colin HuangFounder of Pinduoduo, whose parent launched Temu
- Chris XuFounder of the company that became Shein
- Donald TangShein executive chairman pursuing a public listing
- Mike GallagherHouse committee chair whose 2023 report examined Temu and Shein
- Raja KrishnamoorthiRanking member of the House committee on the CCP
- John Roberts+5 more episodesChief Justice who wrote the 2026 ruling on emergency-powers tariffs
Where it happens
- Nanjing, ChinaWhere Shein's predecessor company was founded in 2008
- Hangzhou, ChinaWhere Alibaba was founded
- Singapore+1 more episodeShein's headquarters from 2022
Timeline
- 1938Congress creates the customs de minimis exemption
- February 24, 2016De minimis threshold raised to $800
- September 2022Temu launches in the United States
- May 2, 2025De minimis ends for China and Hong Kong
- August 29, 2025Global suspension takes effect; postal traffic to the U.S. drops 81 percent
- February 20, 2026Supreme Court rules emergency-powers statute does not authorize tariffs
Still debated
Parcel counts and company shares are estimates, and the Universal Postal Union's 81 percent figure should not be confused with other numbers. Forced-labor findings describe risk and process failure, not proven violations, and whether the suspension will last is unsettled.
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