TikTok: U.S. Ban Could Cost Small Businesses and Creators $1.3B in a Month; China's Foreign Trade Surges 5.0% in 2024, Driven by Exports
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
TikTok is Back Online but Future Ownership Still in Doubt
TikTok: U.S. Ban Could Cost Small Businesses and Creators $1.3B in a Month
AliExpress Sees Surge in U.S. Merchant Interest Amid TikTok Changes
Yiwu Selection Store Opens as Gateway for Brands to Go Global
Douyin Co-Founder's GenAI Platform Raises Tens of Millions in Pre-A Funding
Cainiao Streamlines Operations and Integrates Teams with Alibaba's E-Commerce
Aiper Unveils Next-Gen Pool Cleaners at CES
Xiaohongshu Gains 3 Million U.S. Users in a Day as TikTok Ban Looms
SMOROBOT Secures Major Investment From Ecovacs
China's Foreign Trade Surges 5.0% in 2024, Driven by Exports
TikTok is Back Online but Future Ownership Still in Doubt
TikTok has restored service to U.S. users after Donald Trump intervened, securing necessary assurances for its service providers. The platform thanked Trump for his support and affirmed its commitment to working on a long-term solution that keeps it in the U.S. The app's future remains uncertain, with some Republicans pushing for enforcement of a law that requires TikTok's parent company, ByteDance, to sell its U.S. operations. Trump has proposed a joint venture with the U.S. holding a 50% stake, but legal challenges, including a 20% cap on foreign adversaries' ownership, complicate the situation. The debate over TikTok's status will depend on ongoing negotiations and potential changes to U.S. law.
TikTok: U.S. Ban Could Cost Small Businesses and Creators $1.3B in a Month
TikTok says that a U.S. ban could cost small businesses and creators $1.3 billion in just one month. In a court filing, the company's global business president, Blake Chandlee, stated the losses would escalate if the shutdown continues. Almost 2 million U.S. creators stand to lose $300 million in earnings, while TikTok itself risks losing 29% of its global ad revenue for 2025. Chandlee cited a report showing TikTok's impact on U.S. small businesses, which contributed $24.2 billion to GDP in 2023, with TikTok's own operations adding another $8.5 billion to U.S. GDP.
AliExpress Sees Surge in U.S. Merchant Interest Amid TikTok Changes
As TikTok undergoes major changes, U.S. merchants are seeking alternatives, with AliExpress seeing a threefold increase in seller inquiries last week. The platform's U.S. models—AliExpress Choice and POP (self-operation)—coupled with a three-month commission-free offer, have drawn a surge of local sellers looking for new opportunities.
Yiwu Selection Store Opens as Gateway for Brands to Go Global
Yiwu, a global hub for small commodities, is shifting from price-driven trade to brand-building amid growing competition. In response to rising demand for quality and personalized products, Yiwu brands are expanding globally. The newly opened Yiwu Selection Store, backed by Yiwu Municipal Party Committee and Government, showcases over 10,000 premium products across 23 categories. Within hours, the store secured ¥120 million ($16.4 million) in orders, establishing itself as a key model for global distribution. Combining offline presence with digital platforms, it boosts visibility, traffic, and brand exports, strengthening Yiwu's position in global trade.
Douyin Co-Founder's GenAI Platform Raises Tens of Millions in Pre-A Funding
Hitems, founded by Ren Lifeng, co-founder of Douyin, has raised tens of millions of dollars in Pre-A funding, bringing its parent company, Math Magic, to a $150 million valuation. The platform, launched in 2024, uses generative AI to help designers quickly turn ideas into products. Users can generate product images from prompts or sketches and leverage AI-driven 3D modeling for rapid production. Hitems also serves as a social hub for creators to share and purchase designs. The new funding will support technology development and expansion of GenAI applications in production and community engagement.
Cainiao Streamlines Operations and Integrates Teams with Alibaba's E-Commerce
Cainiao is restructuring to focus on operational efficiency, shifting from an internet-based logistics platform to a logistics operator. A major change includes transferring its 400-person team originally serving AliExpress to the Alibaba E-commerce Business Division. Cainiao executive Ding Hongwei, who previously oversaw the team, will now report to Jiang Fan, head of Taobao and Tmall Group and Alibaba International Digital Commerce (AIDC). Other teams, including those handling domestic e-commerce logistics and electronic waybills, will also move to Taobao and Tmall Group.
Aiper Unveils Next-Gen Pool Cleaners at CES
Aiper, a leader in cordless robotic pool cleaners, has unveiled its new Scuba X1 Series at CES 2025, set to revolutionize pool maintenance. The Scuba X1 Pro Max, priced at $3,799, is the flagship model with nine motors delivering 8,500 GPH suction, advanced mapping, and real-time water quality monitoring. The Scuba X1 and X1 Pro offer advanced cleaning with OmniSense™ technology and up to 3-hour runtimes. Aiper also introduced the Surfer S2 skimmer, designed for efficient surface cleaning. Available in Australia from March 2025, Aiper's products promise seamless, high-tech pool maintenance.
Xiaohongshu Gains 3 Million U.S. Users in a Day as TikTok Ban Looms
Chinese app Xiaohongshu, known as RedNote, saw a surge in U.S. users this week, with nearly 3 million new sign-ups in a single day. According to Similarweb, the app gained nearly 3 million daily active users, a dramatic leap from under 700,000 just a day before. The shift comes as TikTok usage in the U.S. dropped 2.1%, driven by the growing uncertainty around its future.
SMOROBOT Secures Major Investment From Ecovacs
SMOROBOT, a leading brand in the pool cleaning robot industry, has secured a multimillion-yuan investment from Ecovacs, the global leader in cleaning robots. The two companies will partner on product development, manufacturing, and sales, with Ecovacs expanding into the pool cleaning sector. Founded in 2021, SMOROBOT has made waves with its pool cleaning robots, generating nearly ¥100 million ($13.64 million) in sales since launching its first model in 2022, primarily in the U.S. and Europe. SMOROBOT mainly relies on retail channels for sales, alongside e-commerce platforms and its own DTC site.
China's Foreign Trade Surges 5.0% in 2024, Driven by Exports
China's trade performance showed solid growth in 2024, with total imports and exports rising 5.0% to ¥43.85 trillion ($5.98 trillion), according to the National Bureau of Statistics. Exports surged by 7.1%, reaching ¥25.45 trillion ($3.47 trillion), while imports increased by 2.3% to ¥18.39 trillion ($2.51 trillion). Trade with Belt and Road Initiative countries grew by 6.4%, accounting for over half of the total foreign trade. Electromechanical product exports climbed 8.7%, making up nearly 60% of total exports. December saw a 6.8% boost in trade, with exports up 10.9% and imports rising 1.3%.