The trend: Pressure on Chinese-affiliated ecommerce giants such as Shein and Temu is intensifying worldwide.

The details:

• The French government on Wednesday said it will move to suspend access to Shein’s online marketplace unless the company proves its content complies with French law, after authorities discovered "illegal firearms and child-like sex dolls" for sale on the site, per the Associated Press. The Paris prosecutor’s office has launched investigations into Shein, AliExpress, Temu, and Wish over the sale of the dolls. Following the announcement, Shein temporarily halted marketplace sales in France “to ensure full compliance with French law and uphold the highest standards of consumer protection,” according to The Financial Times.
• Japan’s Finance Ministry is preparing to end a decades-old tax exemption on low-value personal imports, which would affect platforms like Shein and Temu that currently benefit from looser rules on small parcels. The policy rethink comes amid a fivefold surge in small-parcel imports over the past five years and growing complaints from domestic retailers that overseas sellers can undercut prices.
• The European Union has proposed to eliminate its de minimis threshold, which exempts small-value imports under €150 ($172.19) from customs duties. It also proposed a separate €0.50 (57 cents) fee for goods routed through warehouses.
• Both Brazil and South Africa closed their de minimis loopholes last year to help domestic sellers compete against the likes of Shein, Temu, and Sea Ltd.’s Shopee.

The context: The move to ban Shein came the same day the China-founded company opened its first permanent store in the BHV department store in Paris, which attracted protesters who accused the company of unethical practices.

• Shein is facing mounting pressure from retailers, politicians, and regulators in France, where lawmakers have backed a draft bill that could bar the company from advertising. France’s fashion industry union, UFIMH, condemned Société des Grands Magasins for hosting Shein, while Galeries Lafayette—which sold those stores to SGM in 2021—criticized the brand’s “positioning and practices” as incompatible with its premium image.
• Juan Martín de la Serna, head of MercadoLibre’s Argentina operations, called for stricter regulation of Chinese ecommerce platforms across Latin America to ensure fair competition, per Bloomberg. He warned that a flood of cheap, low-quality Chinese imports is undermining small and medium-sized businesses, which generate about 90% of MercadoLibre’s sales and provide jobs across the region.

Our take: What’s good for consumers isn’t always good for the broader ecosystem. Consumers are drawn to the bargain prices offered by platforms like Shein and Temu. More than 115 million people—over a quarter of the EU’s population—made at least one purchase on Temu in the first half of 2025, according to the company’s latest transparency report.

Yet even as these platforms adjust to tightening regulations by opening their marketplaces to local sellers and relocating production beyond China, they continue to undercut domestic retailers—prompting local players to push for a level playing field. Amid a sluggish economy and rising competitive pressures, scrutiny of foreign platforms is only set to deepen.