Chinese marketplace DHgate becomes a top US app as trade war intensifies

Tech Crunch - Apr 14th, 2025

The Trump administration's trade war with China has inadvertently led to a surge in popularity for the Chinese e-commerce app DHgate, which became one of the top free iPhone apps in the U.S. App Store. Following a significant increase in U.S. tariffs on Chinese imports, Chinese suppliers and manufacturers took to TikTok to explain to consumers how global luxury goods are often produced in China and later branded in Europe. These revelations sparked interest among American consumers, driving the DHgate app to No. 3 on the iPhone app charts as of Monday morning. Over the weekend, the app saw a dramatic rise in downloads, with U.S. users accounting for a significant portion of this increase.

The viral TikTok trend has highlighted the complex global supply chains behind luxury goods and sparked discussions about the U.S.'s reliance on Chinese manufacturing. While many consumers are drawn to the idea of purchasing luxury items directly from manufacturers, bypassing the brand markups, the reality remains that most goods are still subject to U.S. tariffs. These developments underscore the geopolitical tensions between the U.S. and China, with the latter demonstrating its manufacturing prowess. Meanwhile, online communities and apps like DHgate and Taobao continue to facilitate direct consumer access to Chinese markets, showing the shifting dynamics in global trade and commerce.

Trump Tik Tok Luxury Goods Global Supply Chain U.S. China Trade War D Hgate Chinese E Commerce

Story submitted by Fairstory

RATING

6.6

Fair Story

Consider it well-founded

The article effectively highlights the intersection of social media trends and international trade dynamics, focusing on the rise of DHgate and the influence of TikTok videos. It is timely and relevant, addressing significant issues related to the U.S.-China trade war and consumer behavior. However, the article's accuracy is somewhat limited by the need for further verification of certain claims, such as the exact tariff increases and the manufacturing costs of luxury goods.

While the article offers a clear and engaging narrative, it could benefit from a more balanced perspective by including viewpoints from luxury brands and addressing potential legal and ethical concerns. The reliance on TikTok as a primary source of information, without additional authoritative voices, somewhat undermines the source quality.

Overall, the article provides a compelling look at current economic and social trends, though it could be strengthened by a more comprehensive exploration of the broader implications and a more diverse range of sources.

Accuracy

The article presents several claims that are generally factual, such as the rise of DHgate in the App Store rankings and its connection to the viral TikTok trend. The claim that DHgate surged to become the No. 3 top free iPhone app in the U.S. is supported by data from Appfigures, lending credibility to this specific point.

However, the story's accuracy is challenged by the need for verification of some claims, such as the exact percentage increase in U.S. tariffs on Chinese imports and the precise download figures for DHgate. The article also claims that many luxury goods perceived as European are made in China, a statement that, while plausible, requires more evidence to substantiate.

The article accurately reflects the impact of social media on consumer behavior, particularly the influence of TikTok videos. Yet, the assertion regarding the manufacturing cost of luxury bags, such as the Birkin bag, needs more concrete evidence to ensure accuracy. Overall, while the article is largely accurate, certain claims require further verification to ensure full factual integrity.

Balance

The article predominantly focuses on the impact of the trade war and the role of Chinese manufacturers, which could suggest a leaning towards highlighting the benefits of Chinese e-commerce platforms like DHgate. It provides insight into how these platforms are gaining popularity due to the viral TikTok trend, but it does not equally explore the perspectives of luxury brands or the potential downsides of buying directly from manufacturers.

There is a lack of viewpoints from U.S. consumers or industry experts on the implications of purchasing goods labeled as luxury items without brand verification. Additionally, the article does not address the potential legal or ethical concerns of selling and buying counterfeit or unbranded luxury goods. This creates a somewhat imbalanced narrative, focusing heavily on the Chinese perspective without equally considering the international or opposing viewpoints.

Clarity

The article is generally clear and well-structured, with a logical flow that guides the reader through the narrative of how the trade war and social media have influenced consumer behavior. The language is accessible, making the content understandable to a broad audience.

The use of specific examples, such as the rise of DHgate in app store rankings and the viral TikTok videos, helps to illustrate the points made in the article. However, some sections could benefit from additional context or explanations, particularly regarding the implications of purchasing unbranded luxury goods.

Overall, the article is effective in conveying its main points, though it could enhance clarity by providing more background information on the broader economic and social context.

Source quality

The article cites data from Appfigures to support claims about DHgate's app store rankings, which suggests a reliable source for this information. However, it lacks direct quotes or insights from industry experts, economists, or representatives from the companies mentioned, such as DHgate or the luxury brands.

The reliance on TikTok videos as a primary source of information is questionable, given the platform's informal nature and potential for misinformation. While TikTok can provide real-time insights into consumer trends, it should be supplemented with more authoritative sources to ensure a comprehensive understanding.

Overall, while some sources are credible, the article would benefit from a broader range of authoritative voices to strengthen its claims and provide a more nuanced perspective.

Transparency

The article provides a basic level of transparency by mentioning the data source for app rankings and download figures. However, it lacks detailed explanations of the methodology behind these statistics or the context of the TikTok trend's origin and spread.

There is little disclosure about potential conflicts of interest, such as whether any of the sources have a vested interest in promoting DHgate or similar platforms. Additionally, the article does not clarify how it verified the claims made in TikTok videos, such as the manufacturing costs of luxury goods.

To improve transparency, the article could benefit from more explicit discussions about the basis of its claims, the limitations of its sources, and any potential biases in the data presented.