[Regulatory] Indonesia, South Africa and Chile join the U.S. in an attempt to curb Shein and Temu

On October 24, 2024, the Chilean government (20 million parcels imported in 2023, including 90% under US$41) passed a law re-introducing a 19% V.A.T. on imported products sold by Shein, Temu and AliExpress. Applicable from November 25, this covers web orders under US$41, which were previously exempt from V.A.T. The government, citing “unfair competition” for local producers and retailers, hopes to gain US$4.5 billion in revenue.

In Indonesia, the political move againts Chinese platforms is even more radical. On October 11, the government asked Google (Alphabet) and Apple to ban Temu from app stores in the country. The marketplace has been trying to get in since 2022, to no avail. Although Temu made inroads in the Philippines, Malaysia and Thailand in July 2024, and in Vietnam and Brunei since September, a barrier remains to access the largest consumer market in South-East Asia. Indonesia wants to protect SMEs, which account for over 60% of GDP and 97% of local jobs.