As the US government continues to scrutinize the activities of fashion companies in China, some are opting for the safe haven of the UK to expand their operations. One of these companies is Temu, the Chinese e-commerce giant that has caught the attention of Generation Z and digital fast fashion competitor Shein is on its heels.
Temu’s parent company, Pdd Holdings, recently moved its headquarters from Shanghai to Dublin. PDD filed the change with the U.S. Securities and Exchange Commission last week, stating that its “principal executive offices” are now located in Dublin, Ireland.
Temu has expanded rapidly in Europe and now operates in the United Kingdom, France, Germany, Italy, the Netherlands and Spain, as well as in the United States, Canada, New Zealand and Australia. Despite this global presence, Nikkei Asia reports that Temu “has few staff overseas” and that most employees work in Guangzhou and Shanghai, where its supply chains are located.
Dublin is a popular location for technology companies due to the favourable corporate tax culture that has attracted companies from Apple to Meta and Google. It seems that Temu’s parent company has also moved to this location, possibly in search of a more favourable tax climate.
The move to Dublin could also be a strategic response to the increasing scrutiny fashion companies are facing due to their operations in China. The U.S. government has pressured companies to cut ties with Chinese suppliers over allegations of forcible driving and human rights violations in Xinjiang province. By moving its headquarters to the United Kingdom, Temu’s parent company may be trying to distance itself from these concerns and strengthen its expansion in a more stable environment, despite the fact that its supply chain is located in China.