由 caicai8478 In recent years, the influence of Chinese technology companies in the global market has continued to expand. Among them, TikTok and Shein, as two representative platforms, have quickly occupied overseas markets with their unique business models and strong digital marketing capabilities. However, with the rapid growth of their market share, the controversy over “digital dumping” has also emerged. Are TikTok and Shein becoming a new battlefield for China’s digital dumping? This issue has sparked widespread discussion.
- What is “digital dumping”?
“Digital dumping” usually refers to the behavior of companies rapidly expanding in overseas markets through low prices, high subsidies or data advantages, squeezing the living space of local competitors, and thus forming a monopoly or oligopoly. This phenomenon is common in traditional trade, but in the digital economy era, platform-based companies have achieved more efficient “dumping” through the precise delivery of algorithms, traffic and user data.
- TikTok: Global conquest of content algorithms
TikTok has quickly become one of the most popular social platforms in the world with its powerful recommendation algorithm and short video model. Its success is due to:
Accurate content recommendation: quickly capture user interests through AI algorithms to achieve extremely high user stickiness.
Low threshold creation: Encourage ordinary users to participate in content production and form a huge UGC (user-generated content) ecosystem.
Localized operation: Adjust content strategies for different markets to avoid cultural conflicts.
However, TikTok also faces many controversies:
Data security concerns: Many governments are worried that user data may be obtained by the Chinese government.
Impact on local platforms: For example, Instagram Reels and YouTube Shorts in the United States are forced to follow up with short video functions, but they are still unable to compete with TikTok’s traffic advantage.
Cultural impact controversy: Some countries believe that the dissemination of TikTok’s content may affect local culture.
- Shein: Digital disruption of fast fashion
Shein has risen with the “ultra-fast fashion” model, relying on China’s supply chain advantages and digital marketing to become one of the most popular online fashion brands in the world. Its core advantages include:
Extremely low prices and fast new products: Using China’s flexible supply chain, thousands of new products are put on the shelves every day, and the prices are much lower than traditional fast fashion brands such as Zara and H&M.
Social e-commerce driven: Through TikTok, Instagram and other platforms, influencer marketing is carried out to accurately reach young consumers.
Data-driven production model: adjust production plans through real-time analysis of user behavior to reduce inventory pressure.
But Shein also faces accusations:
Labor and environmental issues: accused of sweatshops and environmental pollution in the supply chain.
Intellectual property disputes: frequently involved in disputes over plagiarizing independent designers’ works.
Impact on local retail industry: small and medium-sized fashion brands find it difficult to compete with their low prices.
- Is it “digital dumping” or market innovation?
Supporters believe that the success of TikTok and Shein stems from technological innovation and efficient business models, which are the natural result of global competition. Opponents accuse them of using China’s supply chain and data advantages to engage in unfair competition and form “digital dumping.”
Key points of contention include:
Is it dependent on unfair subsidies? Some believe that Chinese companies enjoy government support or data monopoly advantages.
Is it undermining market fairness? It is difficult for local companies to compete with them in terms of price, speed and scale.
Is it circumventing regulation? For example, TikTok responded to overseas scrutiny by localizing data, but its compliance is still questioned.
- Future Direction: Regulation and Adaptation
As global regulation of the digital economy becomes stricter, TikTok and Shein may face more challenges:
Stricter data and content regulation: such as the EU Digital Services Act (DSA), potential US bans, etc.
Supply chain compliance pressure: environmental protection and labor standards may increase operating costs.
Intensified local competition: overseas companies may fight back through policy protection or imitation models.
Conclusion
The rise of TikTok and Shein reflects the strong competitiveness of China’s digital economy, but its global expansion has also triggered controversy about fairness, compliance and cultural impact. Whether it is defined as “digital dumping” or not, their success has forced the global market to rethink trade rules in the digital age. In the future, how to find a balance between innovation and regulation will become a common issue for Chinese companies and the international community.