Chinese e-commerce platforms to end refund-without-returns amid weak economy, sources say
Chinese authorities have asked e-commerce platform operators to stop insisting on merchants refunding customers without requiring the return of goods, to alleviate financial pressure on merchants, two people familiar with the matter said.
The government met operators including PDD Holdings, opens new tab and concluded the practice must end by July, from which point only merchants will be able to initiate a refund, the people said, without specifying dates.
The aim is to prevent merchants' situation becoming tenuous during times of economic slowdown, said one of the people, who declined to be identified because the information is not public.
PDD and peer JD.com declined to comment. Alibaba Group, opens new tab and the State Administration for Market Regulation did not respond to requests for comment.
In July, hundreds of people gathered at an office of PDD platform Temu in southern China to protest against its refund policy. Authorities including the market regulator and commerce ministry subsequently ordered PDD to revise the policy.
This year, government bodies including the market regulator and the National Development and Reform Commission have increased criticism of what they dub "involution-style" competition. In March, during the annual parliamentary session, the phrase "comprehensive rectification of 'involution-style' competition" was incorporated into the Government Work Report.
The refund-without-returns policy was designed to benefit both buyers and sellers for some types of order. PDD began to expand the policy in 2021, prompting rivals to follow suit.
Merchants of goods as varied as clothes and household appliances have reported the policy as detrimental to their bottom line as they risk losing both money and goods.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
3 hours ago
- Euronews
Von der Leyen's return as China hawk ends talk of diplomatic reset
Summer has arrived in Brussels with a new trend: the doves are out, the hawks are in. After weeks of telegraphing signs towards a diplomatic rapprochement with China, or at least a thaw, Ursula von der Leyen made an abrupt volte face at the G7 summit with a broadside attack against Beijing's "pattern of dominance, dependency and blackmail" vis-à-vis its trading partners, including the European Union and the United States. "China has largely shown its unwillingness to live within the constraints of the rules-based international system," von der Leyen said in her intervention. "While others opened their market, China focused on undercutting intellectual property protections, massive subsidies with the aim to dominate global manufacturing and supply chains," she went on. "This is not market competition – it is distortion with intent." The president of the European Commission declared, point blank, that the source of "the biggest collective problem" in the global trading system lay in China's accession to the World Trade Organization (WTO) in 2001. Beijing's entry into the WTO has been highly controversial as it opened international markets to a wave of low-cost exports. The admission is linked to the so-called "China shock" and a decline in manufacturing jobs in both the EU and the US. At the G7 summit, von der Leyen warned a "new China shock" was underway. It was a gloves-off denunciation that laid bare the state of mind of the Commission chief, her mounting displeasure and exasperation. In many ways, it was a return to the hawkish stance of her first mandate, during which she famously promoted the concept of "de-risking" to slash vulnerable dependencies that China could exploit. Beijing was quick to hit back at von der Leyen's invective. Guo Jiakun, the spokesperson of the Chinese Foreign Affairs Ministry, called her remarks "baseless" and "biased". Guo, however, did not miss the chance to offer a new olive branch. "China stands ready to increase communication and coordination with the EU, properly handle trade differences, and achieve win-win and shared prosperity," he said. "That said, we firmly oppose any attempt to hurt China's right to development or even assert one's own interests at China's expense." The reset that never was The conciliatory attempt fits in with Beijing's "charm offensive", as diplomats call it, towards the bloc in response to the disruptive policies of US President Donald Trump, who has imposed punitive tariffs on allies and adversaries alike. Sensing an impending rupture in the Western alliance, China has made several overtures to curry favour with Brussels, including lifting controversial sanctions on lawmakers, ahead of a much-anticipated EU-China summit in late July. Last month, Chinese President Xi Jinping hailed the 50th anniversary of bilateral relations as an opportunity to "open up a brighter future" in diplomacy. Von der Leyen replied: "We remain committed to deepening our partnership with China. A balanced relationship, built on fairness and reciprocity, is in our common interest." But in her G7 intervention, delivered with Trump in the room, this commitment was conspicuous by its absence. Instead, she let the hawk fly free and wild. At the core of her speech was Beijing's recent decision to restrict the sales of seven rare earth materials, which she said amounted to "weaponising" trade. China holds a quasi-monopolistic position over rare earths, the 17 metallic elements that are essential for building cutting-edge technologies. The country commands roughly 60% of the world's supply and 90% of the processing and refining capacity. Although the restrictions have eased in recent days, von der Leyen cautioned "the threat remains" and called on the G7 to close ranks to pile extra pressure on China. Rare earths are just the tip of an iceberg made up of commercial disputes that have driven a stark wedge between Brussels and Beijing. The past few years have seen the bloc impose steep duties on China-made electric vehicles, exclude Chinese companies from public tenders of medical devices, label Huawei and ZTE as "high-risk suppliers" of 5G networks, and launch investigations into suspicious uses of industrial subsidies. Brussels has also accused Beijing of engaging in large-scale campaigns of foreign information manipulations and interference (known as FIMI), hacking into state agencies, fuelling military tensions in the Taiwan Strait, violating the human rights of the Uyghur population and acting as the "key enabler" of Russia's invasion of Ukraine. Despite loud pleas from Europeans, Xi Jinping has doubled down on his "no-limits" partnership with Vladimir Putin, causing dismay and outrage across the continent. By offering no significant concessions and sticking to its long-standing practices, China has missed the opportunity offered by von der Leyen after Trump's inauguration, says Noah Barkin, a visiting senior fellow at the German Marshall Fund. "Von der Leyen's unvarnished criticisms of China at the G7 summit are a response to Beijing's intransigence. Unless China shows a willingness to address Europe's concerns, the summit in July is unlikely to produce any deliverables of substance," Barkin said. "The likelihood is that tensions between the EU and China will continue to grow. The closing of the US market to Chinese products will lead to a diversion of exports into Europe, increasing the threat to European industry. And the withdrawal of US support for Ukraine will turn China's support for Russia into an even bigger problem for Europe." Keeping it real Although von der Leyen has earned plaudits for her clear-eyed, matter-of-fact assessment of EU-China relations, her views have not become universally accepted by member states, the true guardians of political power. In April, Spanish Prime Minister Pedro Sánchez flew to Beijing, held a bilateral meeting with President Xi and made a plea to turn the page on the confrontational approach. "Spain is in favour of more balanced relations between the European Union and China, of finding negotiated solutions to our differences, which we have, and of greater cooperation in areas of common interest," Sánchez said. The Spaniard's words immediately caught the attention of Brussels and sent speculation of a diplomatic reset into overdrive. But Alicja Bachulska, a policy fellow at the European Council on Foreign Relations (ECFR), says the buzzy discourse was never credible. "Hopes of a possible reset, if any, were mostly projected by those who do not see eye-to-eye with von der Leyen's Commission," Bachulska told Euronews. "This Commission seems quite consistent in explaining its approach towards China and how it sees the threats, the challenges, and the very limited opportunities for cooperation with China under current conditions." Politics, of course, come with economics attached. For many countries, particularly those export-oriented, China remains an extraordinarily valuable market of 1.4 billion people, despite the multiple obstacles and hurdles that European companies face when doing business. With Trump threatening a whopping 50% tariff on the bloc if trade talks fail, having a cushion to fall onto is considered indispensable to avoid – or at least mitigate – the potential ravaging impact. Trade will be at the very top of the agenda at the EU-China summit, with both sides looking forward to having something to announce. Brussels is keen to put an end to China's probes into brandy, pork and dairy products, which it considers unjustified. But as the date nears, hopes for a trade breakthrough that can make a tangible difference on the ground and relieve some of the tensions are fading, as von der Leyen's hardened tone at the G7 demonstrated. "It's about being realistic: we still see China as a partner, competitor and rival," a senior diplomat said, speaking on condition of anonymity. "We have to be perhaps more confident about our interests, what we can do to pursue them better, but also act when actions are taken that threaten the stability of our continent." A diplomat from another country kept a cool head to lower expectations ahead of the summit, arguing China's alliance with Russia and campaigns of foreign interference remain "serious" and "disturbing" factors with no sign of improvement. "If you want to really deepen ties with us, that's impossible if, at the same time, you behave like this," the diplomat said. "The EU needs to stand up for its own interests, no matter who's in the White House."
LeMonde
8 hours ago
- LeMonde
The French government is stepping in to rescue Eutelsat
On Friday, June 20, President Emmanuel Macron is expected at the Paris Air Show in Le Bourget and aims to make the event a turning point for France and Europe's space strategy. "We are witnessing a dramatic acceleration of the space sector" that "is being privatized at breakneck speed with extremely ambitious projects, especially from the Americans, but also from Chinese players." It is also "becoming militarized very, very quickly," explained an Élysée adviser ahead of the president's midday speech from the "Paris Space Hub" – the Le Bourget hall devoted entirely to the sector. The war in Ukraine has highlighted Europe's dependence on Starlink, Elon Musk's satellite communications network. "Europe needs to "act independently, not be dependent on external solutions," the Élysée acknowledged. In this context, the government announced on June 19 that it would strengthen the state's stake in Eutelsat, the French satellite operator whose low-Earth orbit constellation is, for now, the only viable European alternative to Starlink. To achieve this, France's State Participation Agency (APE, the government's shareholdings agency) will take a major share in Eutelsat's €1.35 billion capital increase; the APE alone will contribute €717 million. At the same time, it will purchase the 13.6% stake currently held by Bpifrance, bringing its total holding to 29.9% – just below the threshold that would trigger a mandatory takeover bid for the entire company.
Fashion Network
19 hours ago
- Fashion Network
Authentic reinforces global strategy with APAC headquarters in Shanghai
Fashion Network: Over the past few years, the performance of many brands in China's market has not been that competitive. Why has Authentic still chosen to set up its APAC center in Shanghai instead of other cities? Jamie Salter: We believe in the long-term potential of the Chinese and broader Asia-Pacific market, and Shanghai is at the heart of that vision. Shanghai is a dynamic city and is the right home for our APAC headquarters, with China presenting great growth opportunities. The opening of our Shanghai office reflects our confidence in the region and commitment to building strong, localized partnerships that unlock the full potential of our brands. This city also provides a complete ecosystem that supports the acceleration and localization of our portfolio brands. It is our long-term commitment to this market. FN: What key brands will Authentic focus on developing in the Greater China/APAC area? Matt Maddox: Our strategic partnerships are driving significant success across our brand portfolio. Nautica is thriving through our collaboration with Tristate, whose deep expertise in China's apparel market and understanding of the brand have proven invaluable. For Hunter, our partnership with Baozun leverages their robust digital, logistics, and supply chain capabilities, perfectly suiting a brand focused on quality, performance and storytelling. Brooks Brothers is gaining renewed momentum thanks to ImagineX, a leading partner in building premium local brands. Finally, Champion 's explosive growth is a direct result of our collaboration with Belle Fashion, which has expertly positioned the brand in key retail channels and effectively connected with the right consumers. FN: What are the criteria for choosing these local partners? Matt Maddox: With nearly 1,800 global partners, our primary focus consistently centers on the product. We prioritize collaborations that effectively represent the brands and yield products genuinely valued by regional customers. This emphasis on product and quality naturally leads to considerations of operational synergy and collaborative methodologies. We are committed to fostering long-term, sustainable relationships built over many years. Our aspiration is for our global brands to also achieve local relevance, both here and in other markets, thereby significantly broadening our partnership footprint worldwide. FN: How do you manage brands with different cultural backgrounds across regional markets? Jamie Salter: Our core business model remains consistent globally; however, cultural adaptation is paramount. While product is key, we recognize the importance of localization: approximately 50% of our product line is global, with the remaining 50% tailored to local preferences. The world is shrinking due to social media and influencers, leading to increasingly similar styles worldwide. The time lag for trends to travel, once six months from Europe to America, has significantly shortened in the digital age. Therefore, our strategy is firmly 'Think Global, Act Local,' a practice we will continue to refine. We're observing a significant shift with products from Japan, Korea, and China, like the highly sought-after Champion Japan collection, now influencing the American market. Our asset-light business model facilitates this global collaboration, ensuring all partners can access diverse products. FN: How do you manage different teams that have varying cultural dynamics? Matt Maddox: From a cultural standpoint, we deeply value listening to our local teams and understanding that operational approaches and team dynamics vary significantly by region. This philosophy extends to our regional companies, each operating almost autonomously rather than receiving top-down directives from Europe, North America, or China, ensuring they effectively cater to their respective local cultures. FN: Aside from brand management, Authentic also operates a sports and entertainment business. Are there plans to expand this business locally? Jamie Salter: Our playbook remains centered on building out sports and entertainment, encompassing live events, experiences and media, much of which is already in motion. With Sports Illustrated, for example, we have live events in Singapore, and we are continuously expanding our footprint to replicate our execution model from Europe and America. With figures like David Beckham present and Sports Illustrated established, alongside live events in Singapore, we are continuously expanding our footprint to replicate our execution model from Europe and America. This expansion will involve both existing brands and the integration of new local celebrities and athletes, with a critical focus on their global appeal. Our 'Think Global, Act Local' strategy dictates that while we adapt to local markets, any engagement—particularly brand acquisitions—must have international travel potential. We believe that what resonates in one market, such as China, can indeed find success back in America. As a global company, we may engage in collaborations for purely local ventures, but our acquisitions prioritize brands with global reach.
