Americans rush to download Chinese apps after 'tax storm'

According to official information from DHgate's website, the platform currently has more than 2 million registered buyers from more than 220 countries. Photo: YiCai .

In just a few days, Chinese e-commerce app DHgate suddenly climbed to the second position in the most downloaded free apps ranking on the US App Store, just behind ChatGPT.

The boom was sparked by a series of viral videos on TikTok, in which Chinese influencers openly shared how Western luxury brands were using factories in China to manufacture their products.

TikToker exposes how global supply chains work

TikTokers like @bagbestie1 and @lunasourcingchina claim that more than 80% of the world's luxury handbags are manufactured in China before being packaged, labeled in other countries, and sold at exorbitant prices.

One of the most popular videos shows factories in Guangzhou, the capital of China’s Guangdong province, allegedly manufacturing for brands like Brooks Brothers, Tommy Hilfiger and Hugo Boss. One video by @lunasourcingchina alone has attracted more than 3.5 million views in three days.

Under hashtags like “China spilling the tea on luxury goods,” TikTok users are discussing the true value of luxury goods. “This just shows how little the real value of these goods is,” commented @valbulosity, whose video has been viewed more than 6 million times and liked 600,000 times. “China is spilling the tea!”

DHgate rose to No. 2 in the free app rankings on the US App Store this Wednesday, just behind ChatGPT.

DHgate, also known by its Chinese name Dunhuang, is a B2B e-commerce platform that specializes in offering incredibly low prices on goods, including “dupes” of popular brands like Lululemon, Birkenstock, Dyson, and Saint Laurent.

The DHgate website interface is quite similar to Amazon, combining the style of other famous retail applications from China such as Shein or Temu. It has eye-catching discount banners and promotions. As soon as you access the homepage, you will be greeted with offers such as “New customers get up to 90% off” and attractive products starting from only $1.90 , including handbags.

DHgate’s product categories range from pet supplies to mini electric cars. When Business Insider tried ordering a pair of $9.98 sunglasses to be shipped to New York, the system automatically applied a $2 coupon and free shipping to the order.

Besides thousands of popular items, DHgate is also famous for providing fake products of expensive fashion and technology items from Western brands.

For example, Lululemon’s best-selling ABC Pants, which cost $128 on the official website, are available for $32 on DHgate and even cheaper in bulk. Other popular items like Adidas Ultraboost shoes, Rhode’s Peptide lip balm, and Dyson Airwrap hair stylers are also available in knockoff versions for a fraction of the price.

Even with the Trump administration's 145% tariff, items ordered through DHgate are still much cheaper than buying from US distributors, according to TikTokers.

The platform is causing a stir because it sells cheap, copycat goods.

Data from Sensor Tower shows that DHgate began to enter the top 100 most downloaded free apps on the US App Store from April 13, ranking at number 8. By April 15, the app climbed to number 2, surpassing a series of other popular apps.

According to TechCrunch , on April 12 alone, DHgate recorded 35,400 global downloads across both the App Store and Google Play, up 56% from the 30-day average. Of these, the number of downloads in the US reached 17,300, up 98%. By April 13, the number of downloads from global iOS users skyrocketed to 117,500, up 732% from the monthly average. Installs from US users reached 65,100, up 940%.

DHgate interface.

“We are grateful but humbled by this surge of interest,” a DHgate representative said. “As a company with a strong foundation in cross-border e-commerce, we remain focused on improving the digital experience for global consumers and small and medium-sized businesses.”

According to the Wall Street Journal , DHgate was founded in 2004 by Chinese businesswoman Wang Shutong. To date, the platform connects more than 2 million registered buyers from over 220 countries. According to its official website, DHgate offers about 30 million products in 26 different categories, including electronics, home appliances, toys, outdoor equipment, renewable energy solutions, and customized products.

The DHgate fever broke out in the context of the US-China trade tensions continuing to escalate. The Trump administration recently announced tariffs of up to 145% on Chinese goods. In response, China announced a tariff increase on US goods to 125%.

Meanwhile, Chinese cross-border e-commerce platforms such as Temu and Shein are also taking advantage of the “golden period” before the “de minimis” tax loophole is officially lifted in May. This tax loophole allows items under $800 to be exempted from duties when entering the US.

Source: https://znews.vn/app-mua-sam-trung-quoc-gay-sot-tai-my-tang-940-luot-tai-ve-post1546311.html