The potential elimination of the de minimis rule in the United States threatens Chinese e-commerce exporters, particularly in the lingerie industry. The rule exempts foreign packages valued at $800 or under from tariffs, fueling the rise of Chinese e-commerce firms and producers. The elimination of the rule would significantly impact China's export growth and GDP. Local governments in China have heavily invested in supporting these firms, but there are concerns of overinvestment and excess manufacturing capacity. Factory owners are considering alternative strategies, such as investing in US warehouses and expanding into new markets, to offset potential losses.
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Original article source: https://www.dailymail.co.uk/wires/reuters/article-14196083/Chinas-erotic-clothing-capital-braces-Trump-e-commerce-crackdown.html
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