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April 16, 2025

Trade Policy Ripples Send Chinese Marketplace App Viral in US

Trade Policy Ripples Send Chinese Marketplace App Viral in US
Photo source: Appliance Retailer

The ongoing trade tensions between Washington and Beijing have catalysed an extraordinary surge in popularity for Chinese e-commerce platform DHgate among American consumers, with installation rates skyrocketing by over 900% in recent days.

This unprecedented growth follows a series of viral TikTok revelations exposing the manufacturing origins of luxury goods, which has fundamentally altered public perceptions about global supply chains.

App analytics from Appfigures indicate the wholesale marketplace made a meteoric rise from 352nd position in U.S. non-gaming iPhone applications on April 11 to become the second most downloaded free app by 15th April, surpassing established social media giants. Concurrently, it secured third place in the overall iPhone chart, demonstrating remarkable cross-category appeal.

The platform’s sudden prominence stems from Chinese suppliers using TikTok to demonstrate how high-end accessories from brands like Hermès and Louis Vuitton are produced in their facilities before being rebranded as European-made products.

One widely shared video from creator @senbags2, later removed but extensively reposted, claimed: “A $38,000 Birkin bag is made for just around $1,400 and that consumers are just paying for the logo and fancy packaging.”

DHgate’s infrastructure supports over 40 million product listings across 30 categories, connecting 1.2 million sellers with buyers in 230 countries through multilingual interfaces. Recent anti-counterfeiting measures include AI-powered authentication systems and mandatory video product reviews, contributing to a reported 10% reduction in problematic listings since 2023.

This manufacturing exposé has exposed hidden dependencies in Western retail networks, with mid-range brands like Lululemon and Hugo Boss also relying on Chinese production. Online communities such as Reddit’s r/DHgate have become essential for consumers navigating quality variations, though distinguishing between authorised factory surplus and replicas remains inherently challenging.

While the app’s popularity does not circumvent the recent 145% tariff increases on Chinese imports, it shows how digital marketplaces can adapt to geopolitical shifts. Industry analysts note this development displays China’s manufacturing dominance.

Concurrently, competitor Taobao entered the U.S. top ten free apps, indicating growing American appetite for direct manufacturer access. Both platforms now face the dual challenge of maintaining growth while steering through complex international trade regulations, with DHgate recently expanding its seller verification processes to include factory audits and production capacity assessments.