The U.S. government's plan to ban tax-free Chinese imports, long in the works, has dealt a blow to consumer-sector giants like Alibaba Group Holding Ltd., Shein, and Temu, which are already grappling with a consumer crisis in their home market.
Shares of Alibaba and smaller rival JD.com Inc. fell approximately 2% Monday as investors reacted to the U.S. plans to tax packages under $800. This move effectively closes a loophole that PDD Holdings Inc.'s Temu and fashion retailer Shein have exploited for years, shipping hundreds of millions of packages to the U.S. annually and gaining market share at Amazon's expense. PDD Holdings Inc.'s stock slipped 2.4% Friday in anticipation of the change, Bloomberg reported.
