Amid escalating tariff wars between the United States and China, the Chinese e-commerce application "DHgate" is gaining popularity in the U.S. In response, U.S. media outlets have begun warning against the use of DHgate.
On the 15th (local time), according to the South China Morning Post (SCMP) and Business Insider, DHgate ranked second in the U.S. App Store's free app ranking, following OpenAI's ChatGPT. Just a few days prior, DHgate's ranking was only within the 200th place.
As of the 12th, DHgate recorded 35,400 downloads globally from the App Store and Google Play Store, representing a 56% increase from the 30-day average. According to a report by the U.S. IT media outlet TechCrunch, downloads of the app in the U.S. increased by 98% during the same period to 17,300.
◇TikTok promotional videos go viral
Foreign media analyze that the popularity of DHgate surged as TikTok videos went viral. Videos on TikTok are circulating showing that Chinese manufacturers supply products to global luxury brands. TikTok influencer "bagbestie1" recently claimed in a video that over 80% of luxury handbags are produced in China, repackaged, and sold abroad.
Another influencer, "lunasourcingchina," promoted the excellence of Chinese factories by showcasing factories in Guangzhou, Guangdong Province, that supply products to brands like Brooks Brothers, Tommy Hilfiger, and Hugo Boss. This video exceeded 3.5 million views in just three days.
TechCrunch noted that "these videos prompted TikTok users to seek ways to purchase directly from Chinese manufacturers," adding that "ultimately, it led them to find other apps linked to the Chinese market, including DHgate." In fact, the Chinese shopping app Taobao also ranked 10th in the App Store free app ranking as of the 14th.
Established in 2004, DHgate is a B2B (business to business) platform selling a total of 30 million products across 26 categories, including electronics, household goods, and toys. The app's official website claims it connects over 2 million registered buyers in more than 220 countries. DHgate emphasizes that consumers can purchase the same products at lower prices before famous brands label products produced in China.
◇Risks of fraud are high in direct transactions with Chinese wholesalers
The popularity of DHgate surged notably after President Trump declared "Liberation Day" on the 2nd, imposing mutual tariffs worldwide. SCMP reported that "the popularity of DHgate rose in line with the escalating trade tensions between the U.S. and China."
U.S. media outlets have warned that using Chinese shopping apps like DHgate could ultimately harm American consumers. On this day, the Washington Post (WP) reported that "Americans should avoid purchasing products from Taobao or DHgate, or ordering directly from Chinese factories," stating that "this will not save money, nor will it help avoid high tariffs on Chinese products, and there is also a risk of falling victim to fraud."
Sky Kanaves, a senior retail and e-commerce analyst at the market research company eMarketer, commented on claims of top products sold at incredibly low prices from Chinese factories or websites, saying, "If it seems too good to be true, it likely is."
WP stated, "Social media posts encourage Americans to purchase products directly from Chinese factories or wholesale websites like DHgate and demonstrate how to contact Chinese manufacturers through widely used chat apps in China," adding that "there are valid reasons for us to buy products at stores or e-commerce sites instead of at farms or factories, even if it may incur higher expenses, as we can enjoy benefits such as bulk discounts, safety and quality control measures, and customer support."