US Crackdown on Cheap Chinese Goods Adds to Temu, Shein Woes (1)

Washington’s envisioned clampdown on the tax-free import of Chinese goods imposes one more layer of uncertainty on consumer-sector mavens from Alibaba Group Holding Ltd. to Temu who are already struggling to cope with a consumer crisis back home.

Alibaba and smaller rival JD.com Inc. sagged about 2% in Hong Kong Monday, as investors parsed the potential fallout from US plans to begin taxing packages worth less than $800. That all but slams shut a loophole that PDD Holdings Inc.’s Temu and fashion-focused competitor Shein have employed for years to ship hundreds of millions of packages into the US annually, carving ...