TikTok's Chinese Sellers Contemplate Future Due To Stricter US Rules: 'Time And Resources' Under Review

Chinese e-commerce vendors are expressing discontent with the increased enforcement of regulations by the U.S. version of TikTok. This move is causing concern among Chinese sellers who view the platform as an alternative to Amazon.com Inc. AMZN.

What Happened: Chinese vendors who wish to sell their products on the U.S. TikTok Shop are unhappy with the platform’s recent efforts to enforce its regulations more strictly, Reuters reported. The vendors claim these new rules disadvantage them compared to U.S. TikTok sellers.

One of the new rules requires U.S. entities registered by sellers to be 51% U.S.-owned and chaired by a U.S. passport holder. This change means that many Chinese sellers will have to re-register as overseas sellers, a status they believe receives less visibility and support on the platform.

Despite the complaints, a TikTok spokesperson stated that the company’s policies for all sellers, including international sellers, have remained unchanged since the U.S. launch of TikTok Shop in September.

“We’re rethinking how much of our time and resources we put into this,” said Shenzhen-based e-commerce seller Jackie Bai.

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Chinese vendors feel targeted by these rules and are considering reducing their efforts on the platform or seeking U.S. partners. They argue that Amazon does not differentiate between U.S. and other sellers, providing equal opportunities for all.

“Almost every single consumer tech company I know based in China, and every Chinese consumer tech client we serve, is selling on TikTok, and those who are not selling are considering how and when to begin selling on TikTok,” said Chris Pereira, CEO of business consulting group Impact.

Why It Matters: The recent crackdown on Chinese-owned tech companies in the U.S. is a result of growing concerns over national security and potential foreign interference in U.S. elections. The U.S. government has been taking steps to limit the influence of Chinese tech companies, with TikTok being a major target.

Earlier in March, the U.S. House of Representatives voted to advance a bill that could force ByteDance to sell TikTok or face a ban in the U.S. This move was seen as a part of the broader strategy to decouple the U.S. from China’s tech industry and protect national interests.

However, China has pushed back against these restrictions, warning of potential retaliation that could impact U.S. companies operating in China. The ongoing tensions between the U.S. and China create uncertainty for companies like TikTok, which are caught in this geopolitical conflict.

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