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Temu parent PDD Holdings said it would step up investment in platform governance and compliance while working with logistics partners and sellers to keep affordable products available to consumers, as higher tariffs and new regulatory requirements reshape global e-commerce.

The industry has been adjusting to higher tariffs and the suspension of duty-free de minimis treatment for low-value imports this year, along with a widening range of regulatory requirements.

Temu sits at an "unique" intersection of global trade, touching the daily lives of billions of people around the world, said Lei Chen, co-chairman and co-chief executive officer of PDD Holdings. The company reported second-quarter total revenues of RMB112.4 billion (US$ 16.6 billion) and net income of RMB27.2 billion for the three months ended June 30.

"We will keep strengthening our compliance capabilities and fine-tuning platform governance," said Chen. "We will continue to invest resolutely in the supply chain. By thoughtfully executing on these structural upgrades, our ultimately goal is to build a highly resilient e-commerce platform that consumers around the world can rely on for competitive prices and great quality."

PDD owns and operates Temu, which launched in September 2022 and now serves shoppers in more than 90 markets. Locally registered sellers in more than 35 countries, including the U.S., U.K., France, Germany, Japan and South Korea, sell on the platform. Temu is the second most-visited e-commerce and shopping website worldwide, according to Similarweb.

Platform governance

Temu has expanded its product safety and compliance program through direct investment, third-party testing partnerships and voluntary regulatory commitments in multiple jurisdictions, including Australia, Canada, Japan and South Korea.

Temu monitors more than 15,000 brands for intellectual property violations, three times as many as a year earlier, and resolves IP complaints within 24 hours.

"We have done extensive work on intellectual property compliance to provide a healthy business environment and level playing field for merchants around the world," Chen said during PDD's quarterly earnings call. "Our recent favorable ruling in the IP litigation involving an industry peer has further demonstrated the effectiveness of our IP protection mechanism. We will remain committed to protecting the legitimate rights and interests of our ecosystem partners and to fostering a fair and reliable business environment."

Small business partnerships

Temu has expanded its work with national business and startup organizations to help local companies get online and sell internationally. It has signed memorandums of understanding with Start:up Slovenia and Portugal's APDC, covering joint activities through 2027 and training for local founders and businesses. Temu has also joined Cross-Border Commerce Europe, contributing to the Brussels-based group's business accelerator work and seller onboarding resources. It has partnered with Danish Startup Group to take part in its programs for early-stage founders.

Temu's Local Seller Program is now open to businesses of all sizes in more than 35 markets. Chen said Temu will keep adding local merchants to broaden the supply of local products while accelerating the building of local warehousing and fulfillment infrastructure and expanding local delivery coverage.

"Through these investments, we hope to integrate more deeply into every market we serve, strengthen the foundation and resilience of our supply chain," he said.