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Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

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RetailChina

DHgate, a Chinese e-commerce site, is suddenly atop Apple’s App Store as tariff fears push U.S. consumers to buy cheap Chinese replicas of luxury items

By
Stuart Dyos
Stuart Dyos
Weekend News Fellow
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By
Stuart Dyos
Stuart Dyos
Weekend News Fellow
Down Arrow Button Icon
April 17, 2025, 5:47 AM ET
Chinese e-commerce platform DHgate displayed on a smartphone.
Chinese e-commerce platform DHgateCFOTO—Future Publishing/Getty Images
  • Chinese e-commerce platforms DHgate and Taobao have soared in popularity this week after viral TikTok videos claim to sell luxury brand items from Lululemon and Hermès for a fraction of the price. The trend has grabbed the attention of American social-media users, who are calling out U.S. companies for their high prices. Lululemon says the factories that claim to manufacture their goods were not incorporated within the company’s supply chain.

Downloads of popular Chinese e-commerce platforms soared in the U.S. this week, spurred by viral TikTok videos from alleged Chinese suppliers claiming to expose luxury brands. 

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Amid a budding trade war between the U.S. and China, highlighted by President Donald Trump imposing 145% tariffs on imports from Beijing last week, some Americans say they won’t pay higher prices as the U.S. seeks to close the “de minimis” trade loophole. 

As it relates to trade, de minimis allows shipments valued under $800 to enter the U.S. without paying any taxes. It’s one of the key reasons companies like Shein and Temu have been so successful in recent years.

“What do American companies think we’re gonna do? We’re gonna pay their prices rather than Chinese prices, when I can get a thousand times more product for the same price as we get here?” one TikTok user said in a post that accumulated nearly 22 million views. 

Amid the tension, Chinese discount retailer DHgate is gaining popularity among American consumers. The platform ranks as the second-most popular app on Apple’s U.S. App Store. In addition to DHgate, another Chinese e-commerce platform called Taobao ranks seventh. 

The fresh demand for Chinese e-commerce platforms comes after Chinese social media accounts went viral on TikTok for claiming to undercut the high prices from several luxury brands. 

While the app’s future in the U.S. remains uncertain—the deadline for TikTok’s Beijing-based parent company to divest ownership is June 15— “China ‘Exposes’ Luxury Brands” was trending on the app Wednesday. Videos with millions of views claimed that Chinese suppliers sell similar or identical pieces at cheaper prices than popular brands.

A video posted to TikTok by @LunaSourcingChina alleged Lululemon leggings could be purchased from two factories in Yiwu, China, for $5 to $6, claiming the activewear brand sources its clothing directly from them. 

“And what’s even better, the material and the craftsmanship are basically the same because they all come from the same production line,” the video says.

Lululemon rejected these claims.

“Lululemon does not work with the manufacturers identified in the online videos and we urge consumers to be aware of potentially counterfeit products and misinformation,” a Lululemon spokesperson told Fortune.

The two factories that claimed to supply Lululemon’s leggings were not listed in the company’s April 2025 Supplier List. 

Another Chinese TikToker named Wang Sen claimed he is the original equipment manufacturer (OEM) for most luxury handbag brands like Hermès. OEMs manufacture products that another company sells. 

“Why don’t you just contact us and buy from us? You won’t believe the prices we (will) give you,” he said in a video.

Hermès did not respond to Fortune’s request for comment.

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Author
By Stuart DyosWeekend News Fellow

Stuart Dyos is a weekend news fellow at Fortune, covering breaking news.

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