Hundreds of Chinese suppliers took to the streets in Guangzhou on Monday, staging a protest at the office of Temu, the overseas shopping app operated by PDD Holdings. The demonstration, which involved dozens of merchants, was sparked by dissatisfaction with what they describe as unreasonable platform policies and unresolved after-sales issues.
According to local media reports and social media videos confirmed by merchants, around 80 suppliers entered the PDD office, demanding action from the company. The protest was short-lived as police intervened, leading the merchants to disperse without any immediate resolution. Yi Magazine, a Chinese media outlet, reported the event on Tuesday, highlighting the tense standoff between the suppliers and Temu.
In a statement issued on Tuesday, Temu acknowledged the protest but clarified that it involved a “group of merchants” who had issues with the handling of after-sales disputes related to product quality and compliance. The company did not directly reference the protest that took place on July 29 but noted that the suppliers had disagreements involving several million yuan. Temu emphasized that these merchants had opted not to use the standard arbitration and legal procedures outlined in their seller agreements. The company assured that it is working to address the merchants’ concerns and that the situation is currently stable.
The protest by suppliers comes at a challenging time for Temu, which is already navigating a complex landscape of international trade. The platform faces additional hurdles from stringent import duties imposed by the US and European Union. Competing with other major players like Shein, TikTok Shop, and Alibaba Group’s AliExpress, Temu’s business operations and reputation are under scrutiny.
The impact of the protest was immediately felt in the financial markets, with PDD Holdings’ stock price dropping by 2.5% in New York trading overnight. This decline reflects the growing uncertainties surrounding Temu as it tries to balance the needs of its suppliers while managing international trade challenges.
Temu’s response to the protest and the ongoing negotiations with the suppliers will be closely watched as the company seeks to stabilize its operations and mitigate any potential fallout from the dispute. The situation highlights the broader issues faced by e-commerce platforms in maintaining harmonious relationships with their partners while navigating a competitive global market.
