The myth of getting rich quickly through cross-border e-commerce has faded

Author | Huang Yu Editor | Zhou Zhiyu In the past decade, the myth of overnight wealth in cross-border e-commerce is rapidly receding. Wang Ce (pseudonym), a helmsman who has been navigating the cross-border wave for nearly eight years, once enjoyed explosive sales and substantial profits, earning a fortune daily. However, now his store's sales can barely maintain one-third of their peak, and the romantic notion of opening stores globally has been shattered by the harsh reality. In the past three years, TEMU has surged overseas with a large number of PDD merchants, carving up what was originally a niche cross-border e-commerce business. The abrupt cancellation of the "small tax exemption" policy for Chinese goods by the United States in April 2025 became the last straw, followed by soaring tariffs that directly impacted Chinese players heavily reliant on direct mail small package models. Not only individual merchants, but cross-border platforms represented by TEMU have also been forced to awaken from their past reliance on tax-free small orders, extreme low prices, and efficient supply chains that created the illusion of "shopping like a billionaire" for overseas consumers. The subsequent China-U.S. economic and trade talks provided a breather, but the pendulum effect of policies has not yet calmed—rumors of the European Union imposing fees on incoming small packages soon emerged. This clearly indicates that uncertainty has become a new normal that cross-border e-commerce must constantly face. For cross-border players heavily reliant on policy dividends, every shift in direction squeezes their already thin profit margins and challenges their survival bottom line. This is no longer an era where victory can be achieved solely through courage and low prices; the days of easy profits are undoubtedly over. Wang Ce and TEMU are also taking action. From price wars at all costs to difficult brand transformation, from full management to semi-management model adjustments, cross-border e-commerce players must exert greater effort to cope with the changing policy environment and severe market fluctuations. For cross-border platforms, this is not only a battle for survival but also a reshuffling war that will determine future standings. As dividends fade and the tide washes away the sand, this life-and-death race testing wisdom, resilience, and adaptability has just begun, profoundly affecting the fate of every participant and outlining a new contour of the global e-commerce landscape. Storm In recent years, the frantic expansion of Chinese cross-border e-commerce platforms like TEMU, SHEIN, and TikTok Shop in global markets has already raised the vigilance of regulators in various countries. For example, in April and May last year, SHEIN and TEMU were designated as "super large online platforms," becoming key targets for regulation under the EU's Digital Services Act; in July, news emerged that the EU would recommend abolishing the current tax exemption threshold for goods valued under 150 euros (approximately 161 USD) from non-EU countries. In emerging markets like Southeast Asia, Chinese cross-border e-commerce platforms are also viewed with suspicion. Shortly after entering the Thai market at the end of July last year, TEMU was placed under scrutiny, with Thai Prime Minister Srettha Thavisin personally ordering the Ministry of Digital Economy and Society, the Tax Department, and the police to investigate whether TEMU complies with Thai laws and pays the required taxes At the same time, Indonesia's Ministry of Communication and Information has decided to block TEMU in the country to protect local micro, small, and medium enterprises. As a key battleground for cross-border e-commerce, the United States has also kept the "sword of Damocles" hanging. Early in Trump's presidency, the market began to worry about whether tariffs would be increased. In February of this year, a major shockwave hit the cross-border e-commerce industry. On February 1, Trump signed an executive order stating that all goods exported from China to the United States would no longer enjoy "low-value tax exemptions." Meanwhile, the United States Postal Service (USPS) announced that starting February 4, it would suspend the acceptance of packages sent from mainland China and Hong Kong. However, due to the customs system's inability to handle the massive volume of orders, the Trump administration was forced to announce a postponement of implementation on February 7. Yet, the anxiety of Chinese cross-border e-commerce remained unresolved. On April 2, the U.S. side announced again the cancellation of tax exemptions for low-value imported products from China. At the same time, against the backdrop of increasing U.S. tariffs on China, starting May 2, packages exported from China to the U.S. valued at no more than $800 would be subject to tariffs equivalent to 120% of the value or $100 per item. For Chinese cross-border merchants and platforms relying on the "duty-free direct mail" model, the implementation of this policy is undoubtedly seismic. Zheng Jichang, director of the China Service Innovation Research Institute, pointed out that the direct purpose of canceling the low-value tax exemption policy is to strike at the "cost-performance advantage" of Chinese cross-border e-commerce, especially targeting platforms that rely on direct mail small package models (such as SHEIN and TEMU), weakening their price competitiveness. Zhang Jiong, vice president of the Guangdong Import and Export Chamber of Commerce, also believes that U.S. tariff policies have a significant impact on independent sellers and those using direct mail, especially the fully managed model of the e-commerce "four dragons," which mostly consists of low-priced products. An increase of $25-50 makes them completely uncompetitive. Currently, the GMV of Chinese cross-border e-commerce in the U.S. market will be extremely volatile. Faced with high taxes, not only TEMU and SHEIN, but even Amazon quickly raised prices on some products. According to SmartScout data, from April 9 to early May, nearly 1,000 products on the U.S. Amazon website saw significant price increases, covering various categories such as clothing, home goods, electronics, and toys, with an average price increase of nearly 30%. For example, the price of a power bank has risen from $110 to $135, an increase of over 20%. In addition, there are reports that Amazon plans to add annotations to product price lists to show consumers the extent of price increases caused by U.S. tariffs. The White House quickly reacted, with White House Press Secretary Karine Jean-Pierre vehemently criticizing Amazon, stating that the planned approach is a "hostile and politicized action." Subsequently, Amazon responded that the company is only considering displaying tariff costs on certain products, and these products belong to its ultra-low-price shopping section Amazon Haul, rather than the entire Amazon platform. A company spokesperson also stated that the relevant policy has never been approved and will not be implemented In addition to raising product prices, after the implementation of tariffs, TEMU became the first platform to announce that it has stopped shipping directly from China to American consumers. This means that its fully managed model in the U.S. is facing significant challenges. Soon, merchants discovered that TEMU's fully managed products on the U.S. site were massively delisted overnight, only showing semi-managed products shipped from local U.S. warehouses, which typically have higher prices than the fully managed products subject to the small tax exemption policy. Meanwhile, a TEMU spokesperson confirmed that all sales in the U.S. market have been taken over by local sellers, with products shipped from within the U.S., emphasizing that local products have "no import fees" and "no additional fees upon delivery." Just when fully managed merchants thought they would lose the U.S. market, the tariff issue welcomed a turnaround. On May 12, the "Joint Statement of the China-U.S. Geneva Economic and Trade Talks" was released, announcing a reduction in tariffs. According to this statement, the tariffs imposed by the U.S. on China have been reduced to 30%, and the previously imposed 24% ad valorem tariff will be suspended for 90 days (until August 12, 2025). At the same time, the Trump administration issued an executive order stating that starting from May 14, the tax rate for goods sent from China valued at no more than $800 via postal services will be reduced from 120% to 54%. This reduction in tariffs by the U.S. is seen as a victory for Chinese merchants and indicates that the daily lives of the American people have become increasingly dependent on Chinese cross-border e-commerce. Although the 54% tariff remains, many merchants told Wall Street Insight that on the same day the joint statement was released, TEMU buyers began notifying that fully managed services in the U.S. would soon resume, reminding merchants to stock up quickly. The significant reduction in tariffs is undoubtedly a boon for cross-border e-commerce platforms like TEMU and SHEIN, but the era of low tariff cost advantages is over, and market uncertainty has increased. A new round of survival battles for cross-border e-commerce platforms has arrived. Rise Cross-border e-commerce platforms play a core hub role in global trade, not only restructuring the traditional international trade chain but also promoting the rapid development of cross-border e-commerce through technology, services, and ecological integration, making them an "accelerator for the expansion of cross-border e-commerce." Many may not know that Alibaba, which is synonymous with Chinese e-commerce, initially engaged in cross-border e-commerce business. As early as 1999, Jack Ma led a team to establish Alibaba International, marking the beginning of the development of cross-border e-commerce in China. However, at that time, Alibaba mainly focused on B2B business, providing online yellow pages-style information display, while actual transactions still relied on offline completion. In 2004, Dunhuang.com, which has recently gained sudden popularity due to U.S. tariffs, was established, positioning itself as "an online trading B2B e-commerce platform," opening the era of online transactions in China's cross-border e-commerce. Six years later, Alibaba established AliExpress, known by sellers as the "international version of Taobao," promoting the development of B2C cross-border e-commerce However, constrained by infrastructure, policies, and market maturity, as well as fierce competition in the domestic e-commerce market, during this period, China's cross-border e-commerce was still in its early stages and had not yet reached a tipping point. Liu Mingtao, chairman of Shandong Hengwang Group, which specializes in construction machinery, revealed to Wall Street Journal that when he started doing foreign trade through cross-border e-commerce platforms in 2012, 99.9% of the companies around him had no idea what he was doing. Around 2014, the Chinese cross-border e-commerce export industry welcomed a critical turning point, with policy support, platform expansion, and market demand jointly driving the transformation and diversion of traditional foreign trade to cross-border e-commerce, entering a period of rapid growth. As early as July 2013, the General Office of the State Council issued the "Several Opinions on Promoting Stable Growth and Structural Adjustment of Imports and Exports," designating the development of cross-border e-commerce as one of the important means for stabilizing growth and adjusting the structure of foreign trade, and proposed clear work requirements. In August of the same year, the General Office of the State Council forwarded the Ministry of Commerce and other departments' "Opinions on Implementing Policies to Support Cross-Border E-Commerce Retail Exports," supporting the healthy and rapid development of cross-border e-commerce retail exports. In 2014, the competitive landscape of domestic e-commerce was initially established, with Alibaba and JD.com dominating. That year, Jack Ma led Alibaba to ring the bell on the New York Stock Exchange, setting a record for the largest IPO in history, with a market value of up to $231.4 billion on the day of the IPO, becoming the second-largest internet company in the world after Google, and earning the title of the largest e-commerce company globally. To seek further development, Alibaba also established globalization as a fundamental strategy in 2014, aiming to "serve 2 billion consumers and 10 million small and medium-sized enterprises globally, and achieve delivery of goods within 72 hours worldwide," while practicing "making business easy for everyone" globally. Alongside its efforts in AliExpress, it successively acquired several overseas cross-border e-commerce platforms. As a global leader in cross-border e-commerce, Amazon's "Global Selling" also significantly increased its recruitment of Chinese merchants during those years, leading to a large influx of Chinese cross-border e-commerce sellers onto the Amazon platform, with many sellers starting their cross-border e-commerce businesses on Amazon. Against this backdrop, the global potential of China's supply chain was further activated, and Chinese sellers gradually shifted from "OEM order-taking" to "independent operation," beginning to explore the possibilities of brand operation. However, due to high entry barriers and the domestic trade still being in a golden development period, the cross-border e-commerce business had not yet entered an explosive growth phase. Han Guangfei, general manager of Jining Sao Machinery Co., Ltd., told Wall Street Journal that although he started trying to do foreign trade through friends in the south in 2013, the domestic trade business was very good at that time, with large-scale infrastructure and real estate industries booming. His company continued to focus on domestic trade until 2018, when domestic trade accounted for 80% and foreign trade for 20%. Therefore, for a long time, the main players on cross-border e-commerce platforms were basically overseas players, with Amazon, eBay, AliExpress, and Wish being the four major mainstream platforms, among which AliExpress and Wish were relatively smaller in scale Outbreak Just as cross-border e-commerce enters a stage of accelerated development, after years of rapid growth, competition among domestic e-commerce platforms such as Taobao, JD.com, PDD, Vipshop, Xiaohongshu, and Douyin has become increasingly fierce. The domestic consumer goods market is facing overcapacity, and "price competition" has become the main theme, leading the domestic market into a "red ocean." Rushing towards the overseas "blue ocean" market has become a consensus among major e-commerce platform companies. As ByteDance founder Zhang Yiming said, "China's internet population accounts for only one-fifth of the global internet population. If we do not allocate resources globally and pursue products with scale effects, one-fifth cannot compete with four-fifths, so going overseas is inevitable." Against this backdrop, in recent years, China's cross-border e-commerce platforms have clearly exploded, with the "Four Little Dragons of Cross-Border E-Commerce" (AliExpress, TEMU, SHEIN, TikTok Shop) representing Chinese e-commerce platforms that have become popular worldwide, threatening Amazon's global e-commerce dominance. According to data from the General Administration of Customs, in 2023, China's cross-border e-commerce import and export volume reached 2.38 trillion yuan, a year-on-year increase of 15.6%, with exports amounting to 1.83 trillion yuan, a year-on-year increase of 19.6%. Over the past five years since 2018, the scale of cross-border e-commerce imports and exports has increased tenfold. Last year, the scale of cross-border e-commerce continued to maintain high growth. According to data from the General Administration of Customs, the total import and export volume of cross-border e-commerce is expected to reach 2.63 trillion yuan in 2024, a year-on-year increase of 10.8%. What has caused a huge shock in the cross-border e-commerce industry is the cancellation of the "U.S. Small Value Tax Exemption Policy" by the Trump administration, which was a booster for the rapid expansion of this wave of cross-border e-commerce. The U.S. small value tax exemption policy began in 1938, initially to facilitate tourists bringing souvenirs into the country (with a limit of $5). After several adjustments, it was raised to $800 in 2016, along with the T86 customs clearance model to simplify the process. Under the small package tax exemption policy, cross-border e-commerce platforms relying on direct mail small package models, such as TEMU and SHEIN, ushered in a golden period of rapid expansion in the U.S. Data shows that from 2015 to 2024, the application volume for "small value exemption" goods in the U.S. surged from 139 million to 1.4 billion. In this wave of cross-border e-commerce boom, TEMU, the cross-border e-commerce platform under PDD, which officially launched in September 2022, is undoubtedly a major driving force and a synonym for "miracle" in the eyes of many. In February 2023, just five months after its birth, TEMU spent $14 million to air a 60-second advertisement during the Super Bowl, not only setting a record for the highest price for advertising in the event's history but also becoming the youngest brand ever to advertise during the Super Bowl. In this event known as the "American Spring Festival Gala," the slogan "Shop like a billionaire" quickly raised TEMU's profile in the U.S. The following year, TEMU once again made a big splash by advertising during the Super Bowl while offering $10 million worth of giveaways during the game Relying on substantial investments, extremely low prices, and the innovative "full custody model," TEMU has brought a massive number of Chinese supply chain manufacturers to dominate the global market. In just two years, TEMU has successfully surpassed eBay to become the second most visited e-commerce website in the world, second only to Amazon. Currently, TEMU has expanded its operations to over 90 countries and regions worldwide, with the United States being its largest single market. A report from Great Wall Securities in March pointed out that TEMU is still maintaining rapid growth in GMV and user numbers. According to Bernstein, TEM has surpassed Amazon to become the e-commerce platform with the highest MAU globally, with GMV expected to exceed $50 billion in 2024 and projected to grow to $70-80 billion by 2025. In the face of TEMU's strong advance, the usually low-profile SHEIN has also taken action. In 2023, to defend its position while breaking through growth bottlenecks, SHEIN, the world's largest fast fashion retailer, launched platformization, full-category, and localization strategies all at once. Meanwhile, TikTok shop, which had focused on Southeast Asia as its main battlefield for the past two years, also began to enter the U.S. market in 2023. Against this backdrop, Amazon has sounded the horn of counterattack, increasing its efforts to attract Chinese merchants while launching the low-price store Amazon Haul last year. The competition among cross-border e-commerce platforms has entered a heated stage. Weapon In the past two years, TEMU has been a gold mine for a large number of new and old cross-border players in China, and its creation of the "full custody model" has swept through like a hurricane, becoming the hottest topic in the cross-border e-commerce industry in 2023. Following in TEMU's footsteps, AliExpress, SHEIN, and TikTok shop quickly launched their own full custody models. The "full custody model" is undoubtedly the biggest secret weapon that allows TEMU to rapidly attract a large number of merchants, as it almost eliminates all entry barriers; merchants only need to supply goods, while subsequent operations and fulfillment are handled by TEMU. Wang Bowen, a post-95 "second-generation factory owner," decided to use TEMU's "full custody model" as the first stop for his cross-border e-commerce business with his thermal cup manufacturing factory. According to Wall Street News, after Wang Bowen took over his family's thermal cup manufacturing factory in 2021, he had been looking to change the previous situation where the factory primarily engaged in low-profit B-end foreign trade business. Originally, he planned to settle on Amazon in mid-2023 to kickstart his C-end cross-border e-commerce business, as he believed at the time that "Amazon was almost the only choice for overseas cross-border e-commerce." However, after TEMU emerged, Wang Bowen changed his mind. He revealed that the initial opportunity to settle on TEMU came when a batch of summer smoothie cups was unsold. After learning about TEMU and its full custody model in early 2023, he thought about whether he could easily consume this inventory through it Wang Bowen recalled that according to TEMU's process, he took some photos, listed the products, and then shipped the goods to PDD's warehouse in Guangdong, after which there was basically nothing else to do. In about two to three weeks, the inventory of over 400 cups was consumed. With this successful attempt and TEMU's rapid growth momentum, Wang Bowen decided to put all plans for other C-end platforms on hold and focus primarily on TEMU. A former TEMU employee revealed that during its startup phase, TEMU had a clear goal: to attract a large number of merchants to open stores in the shortest time possible. Most of the staff concentrated their efforts on recruitment, with a focus on sourcing factories. This is the fundamental guarantee for TEMU's low-price strategy to be executable. It can be seen that on September 19, 2022, PDD announced the launch of the "2022 Duoduo Overseas Support Plan": it would invest a resource package worth billions, focusing on the cross-border e-commerce market in the manufacturing industry, initially creating 100 overseas brands and supporting 10,000 manufacturing enterprises. Specific support measures include: 1) zero commission and zero deposit for manufacturing enterprises to settle in; 2) providing comprehensive infrastructure services such as warehousing, logistics, and after-sales; 3) conducting special training sessions for Duoduo overseas. By providing substantial subsidies, it aims to attract various merchants to enter. A factory owner who began laying out cross-border e-commerce platforms in 2018 told Wall Street Insight: "From the supply chain perspective, other platforms require us not only to have supply chain capabilities but also a full-chain operational capability. We must transport goods to their overseas warehouses, and after the products are listed, we need to operate them ourselves, including advertising data and return processing." TEMU's full-managed model allows him to "replicate" the successful hot-selling products from other cross-border e-commerce platforms on TEMU without having to spend effort on product promotion and fulfillment; he only needs to focus on product development and design and send the goods to TEMU's warehouse in Guangdong. "Full management" has allowed TEMU to achieve victory in the first phase and has made full management a "standard configuration" for major cross-border e-commerce platforms. However, after choosing to be a hands-off manager, some merchants quickly realized that they had completely become supply channels, lacking not only pricing power but also voice, with product categories and development space being restricted. Thus, a semi-managed model was born, positioned between full management and self-operation. Compared to full management, the advantage of semi-management lies in its combination of cost control and flexibility, giving sellers more autonomy in logistics choices and product pricing. However, the semi-managed model is more inclined towards sellers with cross-border e-commerce operational experience, who have local stock overseas and possess local fulfillment and delivery capabilities. Last year, Wall Street Insight learned from sources close to TEMU that the semi-managed model allows TEMU to achieve faster speeds while maintaining quality-price ratios. In the future, if merchants' capabilities continue to strengthen, TEMU may grant them greater space and freedom However, this time the first to sound the semi-managed starting gun is no longer TEMU, but its big brother AliExpress. Since last year, "semi-managed" has become a new battleground for major cross-border e-commerce platforms, with AliExpress, Alibaba International Station, TEMU, SHEIN, and others shifting their focus to the semi-managed model last year. Future In this wave of tariff wars, there is a small episode where the long-silent Dunhuang.com suddenly became popular. Analysts from Caitong Securities pointed out that the short-term surge in traffic for Dunhuang.com is sporadic, but the demand from American consumers for high-cost-performance products is worth noting. "Against the backdrop of significant fluctuations in U.S. tariff policies, we believe that the popularity of Dunhuang.com essentially reflects the strong demand from American consumers for high-cost-performance products, and traffic on cross-border e-commerce platforms is expected to continue to grow." This is also reflected in the recent stocking efforts of merchants. To seize the 90-day low-tariff window, the booking volume of container ships from China to the U.S. has surged. According to data from container tracking software provider Vizion, the average booking volume for the seven days ending May 14 skyrocketed by 277% from the average of 5,709 twenty-foot equivalent units (TEU) for the week ending May 5. In addition, shipping giant Hapag-Lloyd stated that the booking volume of containers from China to the U.S. has jumped by 50% in recent days. Wall Street Insights learned from Ding Linfeng, general manager of Shanghai Weida Shade Equipment Co., Ltd., a merchant on Alibaba International Station, that American customers requested another container of goods worth $100,000 on the night of the tariff reduction on May 12. "They are now in a hurry to place additional orders, hoping we can complete production within a month. Because subsequent goods still need to drift at sea for a month. Everyone hopes to seize the 90-day shipping window!" There are many merchants like Ding Linfeng on Alibaba International Station experiencing a surge in orders from the U.S. region. However, in the long run, under the new round of tariff shocks, cross-border e-commerce platforms in the U.S. market will undoubtedly face a major reshuffle. Tian Guangdong, president of the Jilin Provincial Digital Economy Industry Association, pointed out that small and micro enterprises and sellers relying on low prices may be forced to exit the U.S. market, while platforms and large sellers with brand premium capabilities and supply chain integration advantages will accelerate their market share acquisition. Huo Haoyang, president of Fengbo International's China region, believes that for cross-border sellers, this is a process of raising the threshold. At the same time, it is a reshuffle for China's small and medium-sized sellers, cleaning up non-quality white-label/low-price competition/non-compliant sellers. This is undoubtedly a very unfavorable situation for TEMU, which relies on the rapid expansion of small white-label merchants in the U.S. According to Wall Street Insights, some merchants have already decided to exit TEMU and switch to other platforms. In this tariff storm, semi-managed merchants who choose to set up overseas warehouses locally in the U.S. have essentially found a safe haven, while fully managed merchants have been severely impacted. Multiple merchants have reported to Wall Street Insights that recently, traffic in the U.S. region of TEMU has clearly shifted towards semi-managed merchants Wall Street Journal found that when searching for several categories of products on TEMU, almost all were local warehouse products. Su Jing, the founding secretary-general of the Qingdao Cross-Border E-Commerce Association, pointed out that cross-border e-commerce platforms are likely to recalibrate their recommendation algorithms in response to changes in industry ecology due to policy shifts, significantly reducing traffic support for direct sellers to adjust the internal business structure of the platform. She stated that the transformation of the business model is imminent, and platforms that rely heavily on direct mail small packages, represented by the fully managed model, will face immense pressure to transition to a semi-managed model that ships from overseas warehouses. After the transformation, operational stability can be enhanced, better aligning with new policy requirements. It now appears that TEMU's strong promotion of the "semi-managed" model since last year has inadvertently alleviated its pressure during this tariff storm. With the cancellation of small tax exemptions, the semi-managed model may become mainstream in TEMU's U.S. region. Multiple brokerage firms pointed out that TEMU's semi-managed model can drive an increase in the proportion of bulk goods, thereby raising the average transaction value. Coupled with reduced average logistics costs, it can enhance user experience while optimizing its unit economic model, thus improving profitability and market competitiveness. Clearly, even though TEMU's price advantage has been significantly impacted by the tariff shock, it will still be a major competitor in the upcoming market landscape. Analysts from Great Wall Securities noted that against a backdrop of high inflation, TEMU still has a significant price advantage over U.S. domestic e-commerce and other cross-border e-commerce platforms due to its extreme supply chain efficiency, potentially becoming a "price safe haven" in the U.S. inflation environment. It is worth mentioning that at the end of April, TEMU's semi-managed U.S. site officially launched the Y2 new model, supporting sellers to ship directly from China to the U.S. Meanwhile, the shipping time has been extended from the previous 2 working days to 9 working days, with the overall logistics time extended to 14 working days. This is another significant adjustment in TEMU's operational model following the fully managed and semi-managed models. Under the Y2 new model, merchants do not need to stock goods in U.S. warehouses and can ship directly from within China to U.S. consumers, thus eliminating high overseas storage costs and inventory backlog risks. Y2 is actually Amazon's FBM (Fulfilled by Merchant) model, but unlike Amazon, TEMU still retains pricing power. Additionally, compared to the semi-managed model, the fulfillment time for the Y2 model is longer, and whether consumers will be willing to pay is still uncertain. It is not difficult to see that TEMU is currently one of the platforms that has taken the lead in showing a proactive response to this wave of tariff storms. In fact, to reduce the potential policy risks associated with a high proportion of U.S. market share, TEMU has been recruiting U.S. merchants since last year. Starting from November last year, TEMU further lowered the entry threshold for merchants, allowing any U.S. brand or individual seller to register and sell on TEMU. The U.S. market once contributed more than half of TEMU's sales. Over the years, TEMU has also begun to gradually weaken its dependence on the U.S. market, with emerging markets such as the Middle East, Europe, Latin America, and Southeast Asia now being key areas of focus According to a report by the overseas e-commerce research institution Emerce, the European market is expected to contribute 35%-40% of TEMU's global share in the future, surpassing North America to become the largest market. In any case, like the growth path of domestic e-commerce in the past, cross-border e-commerce will also enter a new stage of development. With the changing global trade situation, there is a consensus that cross-border e-commerce will inevitably shift from growth at all costs to a focus on profitable growth, moving from a pure "price war" to a "value war" that emphasizes product and service value. Several cross-border e-commerce professionals told Wall Street Insight that the threshold for cross-border e-commerce has become higher. Chinese companies going overseas must increase R&D investment, improve product quality and added value, and shift from simple "low-price exports" to a "branding" high added-value strategy. The tariff storm is reshaping the global e-commerce landscape, and the future is full of challenges but also contains infinite opportunities. Those who can seize the opportunities will be able to write a new legend on the global e-commerce stage. 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