The Chinese government has leverage over the two firms. Although Temu has grown quickly, PDD, its parent company, remains heavily dependent on its Chinese business, Pinduoduo. Shein does not sell its wares in the country, but it does rely on Chinese tech talent for its algorithm.

Popular budget retailers Shein and Temu are following through on plans to raise prices due to President Trump’s tariffs, with some products more than doubling in cost in recent days.