We know it well now: those Chinese companies seem to be born out of nowhere and in no time they hurl and record turnover from dizzying. It was the case of Sheinnow it’s the turn of Leanthe online shopping platform landed in Italy in April 2023 and by 90 million users only in Europe.
Despite the young age, in short, Temu has also become an authentic e-commerce giant that has already passed the 50 billion euros in turnoverselling everything and at super torn pricesfrom tech accessories to clothing, from cosmetics to furniture. But behind the very low prices, there is always someone who pays the bill and someone who collects figures with various zeros.
Take stock of it Milena Gabanelli And Mario Gerevini in the insert of the Corriere della Sera Dataroom.
The survey of the European Union
Temu ended up under the EU lens for alleged violations of the rules to protect consumers. Brussels accuses the platform of not doing enough to block the sale of dangerous or illegal products. If recognized guilty, risks a maxi-on up to 6% of global turnover.
The numbers of online trade speak clearly: in 2024 they were imported into the Union 4.6 billion of low value products (less than 150 euros), almost double compared to 2023. Nine out of ten packs come from Chinaand in 2023 they were seized 17.5 million counterfeit articles.
The European Union is now considering eliminating the tax exemption for packages under 150 euros, introducing a management fee to cover customs checks.
Who collects profits?
And here comes the crucial point: Where do Temu’s money end?
As Milena Gabanelli explains, the company that controls the platform is PDD Holdingsofficially recorded a Dublinwith headquarters a Shanghai and registered and tax office at Cayman Islands. Not surprisingly, it is listed on Nasdaq by Wall Street with a capitalization of about 170 billion dollarsmore than Nike and almost as much as Inditex (Zara’s holding).
At the head of this empire there is Colin Zheng Huangformer Google engineer and today among the richest men in China. And where does his part of earnings ends? In the accounts of three financials (Walnut Street Ltd, Walnut Management Ltd, Steam Water Ltd) and in a family trust, all domiciled at British virgin islandsa well -known tax paradise. Result? Miliardari profits that exempted.
According to reconstructions, Huang controls the 34.6% of shares by PDD Holdings e 60% of voting rightswhich means that his personal heritage exceeds today 60 billion dollarswell over 43 billion estimated by Forbes.
Temu, Tiktok and Shein: the same tax scheme
It is no isolated case: Temu, Tiktok and Shein share the same fiscalistae the same tax optimization strategy. The three founders – Colin Huang (Temu), Zhang Yiming (Tiktok) and Xu Yangtian (Shein) – established the management of their finances in same office to Cayman.
The budget of PDD Holdings clearly confirms it:
The Cayman islands currently do not collect taxes on individuals or companies based on profits, income or earnings.
The mechanism is simple: Temu sells products from Chinese companies often unknown and sometimes not compliant with European regulationswestern consumers acquire them attracted by low prices, while profits end up in tax havens, protected from taxes.
Who pays the real cost?
While giants as Temu thrive, European companies that respect the regulations and pay taxes suffer unfair competition. Commercial and fiscal dumping subtracts revenues from honest producers and undermines the internal market, not to mention the environmental and social impact of an economy based on disposable products, often difficult to dispose of.
Temu is only the last piece of a well -tested system that moves colossal wealth to exempted destinations. And in the end, paying the account, consumers, local businesses and the entire economic ecosystem.
