The ecommerce sector, which has been driving growth in air cargo, is facing potential challenges as Chinese ecommerce companies come under increased scrutiny from Western governments. The US has passed legislation requiring the owner of TikTok, a popular Chinese social media app, to divest itself of the platform and its ecommerce component TikTok Shop. This move has been supported by bipartisan consensus in the Senate and is expected to be signed into law by President Biden. Similar investigations are being carried out in South Korea and the EU against Chinese ecommerce companies for unfair practices.
As concerns grow over the influence of Chinese ecommerce platforms in overseas markets, countries like France and South Korea are taking steps to regulate their activities. France has passed legislation to slow down the sale of low-cost fast fashion products, while Seoul is focusing on ensuring foreign platforms provide adequate service and support obligations. The investigations reveal the detrimental impact Chinese platforms have on domestic businesses, particularly SMEs.
While Chinese firms are being scrutinized for their practices, it is important to note that Western ecommerce giants like Amazon have also received significant government support. However, concerns over data privacy and surveillance practices by Chinese firms like Alibaba and TikTok remain a key issue. The need for increased regulations and scrutiny of all large ecommerce operators, including Amazon, is emphasized.
The EU is expected to lead efforts in holding Chinese ecommerce operators accountable, while potential tariffs and regulations from the US could also increase if there is a change in leadership. Overall, the focus should be on promoting fair competition and preventing monopolization by Chinese ecommerce platforms in order to safeguard the interests of SMEs and ensure a level playing field for all ecommerce operators.
