Temu, Shein and Chinese commerce in Mexico: unemployment, tax evasion and data leakage

China has become an economic enemy for the United States and a driver of unfair practices that severely affect the Mexican economy, where indeed: legislation is urgently needed. Through platforms like Temu, Shein, and other Beijing-subsidized brands, Chinese digital commerce deploys an aggressive market penetration strategy in the USMCA markets for the mass population, using artificially low prices, state subsidies, and tactics that manipulate consumers.

This not only displaces local industry but also generates unemployment, tax evasion, and loss of economic sovereignty. The massification of these platforms in North America doesn't respond to fair competition but to a plan of systematic expansion. A plan that, without regulation or corrective measures, will continue dismantling the productive and fiscal structure of the USMCA countries.

4 simple steps to describe the fraud and unfair competition of Chinese commerce:

1. The seductive trap of Chinese commerce: what the consumer experiences

Every January and February, applications like Temu, Shein, or AliExpress increase their presence in the Western digital world. Their refined algorithms manage to keep users longer within the interface, offering them increasingly cheaper products, with gamifications, raffles, and false promises of economic rewards, beyond any real orbit.

This exposes a data leak that escapes national legal mechanisms, from location to banking relationships and uses of our privacy.

What happens in practice?

• The consumer enters out of curiosity, looking for "something cheap."
• Ends up trapped in a system that rewards permanence, not reasoned purchase.
• They are encouraged to spend with the promise of rewards, reputation, or even money.
• According to Infobae, W Radio, and other media, the user doesn't receive the promised product or fails to complete the purchase.

Typical example:

• In the Temu app, a user spends 40 minutes trying to get an "iPhone for 9 pesos" by inviting friends. They don't succeed.
• During the process, they end up buying three items they don't need, with artificial discounts that mask inflated prices.

General feeling: frustration, manipulation, and loss of control.

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2. Unfair competition strategies

What seems like a simple "online purchase" is actually part of a larger strategy of unfair competition:

• State subsidies: many Chinese companies receive direct government support, allowing them to sell below the real cost.
• Evasion of tax and tariff controls: thanks to the fragmentation of shipments, many purchases below certain thresholds evade taxes.
• Use of low-quality materials or counterfeits: which lowers prices but damages market trust.

These practices would not be sustainable for Western companies, subject to strict environmental, labor, and fiscal regulation.

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3. Impact on USMCA countries

Estimated losses for the retail sector (2023):

• U.S.: $9.7 billion in sales displaced by Chinese digital commerce.
• Mexico: $1.2 billion, mainly in the clothing and accessories sector.
• Canada: $800 million, with a strong impact on cheap technology and home goods.

Impact on local employment:

• For every $1 million displaced to platforms like Temu or Shein, between 8 and 12 formal jobs are lost in the USMCA region.
• In Mexico, the loss mainly affects border areas where export products are assembled.

Collateral damages:

• Saturation of customs with unregulated or smuggled products.
• Slowdown of local SMEs, especially in fashion, gadgets, and home goods.
• Devaluation of local brands, which can't compete in price or logistics.

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4. The consumer as a hostage of "immediate gratification"

Beyond macroeconomic damage, the consumer is psychologically affected:

• Loses trust in legitimate digital commerce.
• Gets used to abusive practices: "if the product doesn't arrive, oh well."
• Normalizes the cycle of buying without