Fate of China e-commerce exports to US uncertain as Congress eyes overhaul of duty-free shipping rule

The de minimis rule allows companies to ship packages worth under $800 to the US without paying import duties or taxes. This has fueled the rise of Chinese e-commerce exports to the US.

Bipartisan legislation has been introduced in Congress to overhaul or eliminate the de minimis rule for China, seen as giving Chinese companies an unfair advantage.

Chinese e-commerce exports hit $258 billion in 2022, up 19.6%, now comprising over 7% of China's total exports. The US is the top destination.

Companies like Temu and Shein are accused of accounting for over 30% of packages imported under the de minimis rule and not doing enough to avoid forced labor.

It's uncertain if the de minimis rule will change this year, given divided US politics. But increased customs scrutiny has already started slowing e-commerce package clearing.