China-Founded Rivals Shein and Temu Ramp Up War for American Shoppers

Subscribe to a bundle to unlock all coverage by Caixin Global and the WSJ.

By Shen Lu

(The Wall Street Journal) — Shein and Temu, two of the fastest-growing shopping platforms in the U.S., have taken the gloves off in a globe-spanning fight that accentuates a strong reliance on China that both companies are trying to play down.

Fashion-retailer Shein, with its $5 pants and $9 dresses, seemed indomitable in its fast rise to become the top fast-fashion company in the U.S. Then came Temu, an online marketplace backed by Chinese e-commerce firm PDD Holdings, which has soared in popularity since its U.S. launch in September.

The two companies have slapped lawsuits on each other in U.S. courts, alleging corporate dirty tricks, including bullying suppliers to pick sides and trademark infringement.

Less publicly, the dispute is playing out on the ground in China, where most of their supply chains and back offices are. The firms are fighting for suppliers and workers and are demanding long hours as part of a competition to get cheap goods to win over thrift shoppers in the U.S. — their biggest market.