Cross-border e-commerce resurgence: pinduoduo's Temu sues Shein in the United States

Pinduoduo, a cross-border e-commerce platform, filed a lawsuit in federal court in Boston on Friday, suing fast fashion competitor Shein for violating US anti-monopoly law, Beijing time.

Temu accused Shein of using market power to force clothing manufacturers to sign exclusive agreements to prevent them from working with Temu, which has been in the United States for less than a year.

"as the dominant ultra-fast fashion retailer, Shein knows that manufacturers need to rely on its sales and its channels in the US market, so it also knows that it can force manufacturers not to do business with Temu," the indictment said. Temu also accused Shein of "undermining the expansion of the super fast fashion market in the United States."

A spokesman for Shein said on Monday that Temu's lawsuit was "groundless and we will actively respond to it."

The two companies have already been involved in another legal conflict in Chicago. In that lawsuit, Shein accused Temu of belittling Shein along with online celebrities on social networks. Temu has filed a motion to dismiss the lawsuit, but the court has not yet made a decision.