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Reuters
23-05-2025
- Business
- Reuters
Australia's new haul of Chinese online goods helps tame inflation
SYDNEY, May 23 (Reuters) - As businesses globally fret about sky-high U.S. tariffs reviving rampant inflation, in Australia, the redirection of cheap Chinese goods is expected to provide relief for consumers and policymakers worried about stubborn cost pressures. Alibaba's Taobao and are the latest Chinese e-commerce platforms to enter the Australian market, seeking to tap into the bargain-starved country's appetite for online deals. The expected flood of cheap goods from China, on top of a recent slowdown in inflation, is among several reasons the central bank felt confident enough to cut interest rates this week. In an economy like Australia's that manufactures very few finished products domestically, Taobao is finding new markets outside of its core Chinese-speaking consumer base. "I don't shop a lot, but if I do buy something, I will buy it online... If I can get it cheaper through Taobao, 100% I'll buy from them," said Jodi Clarke, a therapist in Melbourne, whose first purchase on the site included three look-alike Hermes Kelly bags for A$129 ($83.24). China's factories are rushing to reach more new markets overseas as the domestic economy slows, with U.S. President Donald Trump's sweeping tariffs making it much more difficult to access the U.S., the world's largest consumer market. Frederic Neumann, chief Asian economist and co-head of global research at HSBC, said the expansion of Chinese e-commerce platforms overseas will intensify disinflation pressures, especially for consumer goods. "What the world is facing is a growing inflation divergence between the U.S. and other economies, with prices climbing in the former, and stabilising, if not outright declining, in the latter," said Neumann. While the flood of Chinese goods has raised alarms in manufacturing-dependent countries in Southeast Asia, Australia's overwhelming reliance on imports for many household items diminishes most such concerns. The Reserve Bank of Australia judges recent global trade developments to be disinflationary in net terms for Australia, one of the reasons it opened the door to more interest rate cuts on Tuesday. "Because Australia has a higher share of Chinese products in most parts of its import basket compared with other economies, the redirection of tariff-affected exports is likely to place additional downward pressure on Australian import prices, especially in the short term," the RBA said in its quarterly economic update this week. Australia bought a whopping A$110 billion of goods last year from China, easily its biggest trading partner. Chinese trade data for April showed exports to Australia jumped 9% from the previous month while shipments to the U.S. tumbled almost 18%. The RBA also noted cheap goods from China are unlikely to displace much Australian production and could even benefit industries reliant on imported inputs, such as clothing retailers. Goldman Sachs has estimated the redirection of Chinese goods into Australia, particularly in toys, furniture and clothing, could subtract 20-50 basis points from headline inflation over the next year or two. Those forecasts were made before China and the U.S. agreed to pause steep tariffs this month. Headline consumer price inflation held at 2.4% in the first quarter, comfortably within the RBA's target band of 2% to 3% and having come down from the 7.8% peak in late 2022. Chinese e-commerce platforms are not completely new in Australia, with Temu already capturing big chunks of online sales, but their broadening appeal to Australians comes as they wrestle with lingering cost-of-living pressures. Singapore-based online fast-fashion retailer Shein, which sells clothes made in China, earlier this month held a pop-up store in Sydney and launched its first Australia-focused brand, Aralina. Alibaba had been a low-key cross-border player until last year when it started investing aggressively to boost global sales, including in Australia. Its main competitor ( opens new tab also launched its Australian site in March. The push was initially designed to reach more Chinese buyers overseas, but Trump's tariff chaos thrust those e-commerce sites into the spotlight, with Taobao now offering an English version of the app. Taobao is already promoting sales in English for the annual "618" shopping festival on June 18, one of China's largest. It offers free shipping to Australia for clothes worth more than 249 yuan ($34.25). Consumers interviewed by Reuters say Taobao's app is easy to use and has translation functions to help communicate with sellers. High shipping costs can sometimes be a hindrance, but in some cases it is still cheaper than buying locally. The site's growing profile in English-speaking communities has elevated the "Taobao haul" trend on TikTok in markets like Australia. Australian consumer Jessica Cox shared her first Taobao experience on social media, which included purchases of imitations of AirPods Max headphones. She also bought a Dyson vacuum cleaner and New Balance shoes, which were on the way. "I thought I'd give it a try as a lot of people were saying they are pretty close to being mirror fakes," she said. "I thought, what do I have to lose?" ($1 = 1.5497 Australian dollars)
Yahoo
23-05-2025
- Business
- Yahoo
Analysis-Australia's new haul of Chinese online goods helps tame inflation
By Stella Qiu SYDNEY (Reuters) -As businesses globally fret about sky-high U.S. tariffs reviving rampant inflation, in Australia, the redirection of cheap Chinese goods is expected to provide relief for consumers and policymakers worried about stubborn cost pressures. Alibaba's Taobao and are the latest Chinese e-commerce platforms to enter the Australian market, seeking to tap into the bargain-starved country's appetite for online deals. The expected flood of cheap goods from China, on top of a recent slowdown in inflation, is among several reasons the central bank felt confident enough to cut interest rates this week. In an economy like Australia's that manufactures very few finished products domestically, Taobao is finding new markets outside of its core Chinese-speaking consumer base. "I don't shop a lot, but if I do buy something, I will buy it online... If I can get it cheaper through Taobao, 100% I'll buy from them," said Jodi Clarke, a therapist in Melbourne, whose first purchase on the site included three look-alike Hermes Kelly bags for A$129 ($83.24). China's factories are rushing to reach more new markets overseas as the domestic economy slows, with U.S. President Donald Trump's sweeping tariffs making it much more difficult to access the U.S., the world's largest consumer market. Frederic Neumann, chief Asian economist and co-head of global research at HSBC, said the expansion of Chinese e-commerce platforms overseas will intensify disinflation pressures, especially for consumer goods. "What the world is facing is a growing inflation divergence between the U.S. and other economies, with prices climbing in the former, and stabilising, if not outright declining, in the latter," said Neumann. While the flood of Chinese goods has raised alarms in manufacturing-dependent countries in Southeast Asia, Australia's overwhelming reliance on imports for many household items diminishes most such concerns. The Reserve Bank of Australia judges recent global trade developments to be disinflationary in net terms for Australia, one of the reasons it opened the door to more interest rate cuts on Tuesday. "Because Australia has a higher share of Chinese products in most parts of its import basket compared with other economies, the redirection of tariff-affected exports is likely to place additional downward pressure on Australian import prices, especially in the short term," the RBA said in its quarterly economic update this week. Australia bought a whopping A$110 billion of goods last year from China, easily its biggest trading partner. Chinese trade data for April showed exports to Australia jumped 9% from the previous month while shipments to the U.S. tumbled almost 18%. The RBA also noted cheap goods from China are unlikely to displace much Australian production and could even benefit industries reliant on imported inputs, such as clothing retailers. Goldman Sachs has estimated the redirection of Chinese goods into Australia, particularly in toys, furniture and clothing, could subtract 20-50 basis points from headline inflation over the next year or two. Those forecasts were made before China and the U.S. agreed to pause steep tariffs this month. Headline consumer price inflation held at 2.4% in the first quarter, comfortably within the RBA's target band of 2% to 3% and having come down from the 7.8% peak in late 2022. INCREASED COMPETITION Chinese e-commerce platforms are not completely new in Australia, with Temu already capturing big chunks of online sales, but their broadening appeal to Australians comes as they wrestle with lingering cost-of-living pressures. Singapore-based online fast-fashion retailer Shein, which sells clothes made in China, earlier this month held a pop-up store in Sydney and launched its first Australia-focused brand, Aralina. Alibaba had been a low-key cross-border player until last year when it started investing aggressively to boost global sales, including in Australia. Its main competitor also launched its Australian site in March. The push was initially designed to reach more Chinese buyers overseas, but Trump's tariff chaos thrust those e-commerce sites into the spotlight, with Taobao now offering an English version of the app. Taobao is already promoting sales in English for the annual "618" shopping festival on June 18, one of China's largest. It offers free shipping to Australia for clothes worth more than 249 yuan ($34.25). Consumers interviewed by Reuters say Taobao's app is easy to use and has translation functions to help communicate with sellers. High shipping costs can sometimes be a hindrance, but in some cases it is still cheaper than buying locally. The site's growing profile in English-speaking communities has elevated the "Taobao haul" trend on TikTok in markets like Australia. Australian consumer Jessica Cox shared her first Taobao experience on social media, which included purchases of imitations of AirPods Max headphones. She also bought a Dyson vacuum cleaner and New Balance shoes, which were on the way. "I thought I'd give it a try as a lot of people were saying they are pretty close to being mirror fakes," she said. "I thought, what do I have to lose?" ($1 = 1.5497 Australian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
15-05-2025
- Business
- CNA
South Korea fines China's Temu for user data violations
SEOUL: South Korea has fined Chinese e-commerce giant Temu nearly US$1 million for illegally transferring Korean users' personal information to China and other countries, a data protection watchdog said Thursday (May 15). Chinese platforms such as Shein, Temu and AliExpress have skyrocketed in global popularity in recent years, offering a vast selection of products at stunningly low prices that have helped them take on United States titan Amazon. Temu outsources and stores users' data with companies in several countries, including China, Singapore, South Korea and Japan, according to Seoul's Personal Information Protection Commission (PIPC). But the company "failed to disclose in its privacy policy or notify users that personal data would be entrusted to overseas entities", it said in a statement. The PIPC said it fined Temu around 1.39 billion won (US$997,624) for violating the data protection act. The watchdog said Temu also failed to supervise overseas companies, including on data protection, and did not properly inspect their handling of personal information. As of 2023, an average of 2.9 million users in South Korea were using Temu daily, but the company did not designate a local representative as required by South Korean data protection law, the watchdog said. Temu also complicated the account deletion process with seven steps, making it "difficult for users to exercise their rights", it added. Temu respects the "decision by Korea's Personal Information Protection Commission and cooperated fully with the investigation", a company spokesperson told AFP. "We made improvements during the process to align with local requirements. We support efforts that promote consumer trust and strengthen data transparency," they added. Thursday's announcement comes weeks after the watchdog said Chinese artificial intelligence app DeepSeek was transferring personal data to a cloud services platform without users' consent. South Korea has previously blocked downloads of DeepSeek and moved to restrict its use on government-linked devices. The South Korean watchdog also fined AliExpress around 1.98 billion won last year for illegally transfering Korean users' data overseas. And it fined social media giant Meta 21.6 billion won last year for illegally harvesting sensitive data including sexual orientation from nearly a million South Korean Facebook users and sharing it with advertisers.
