Chinese e-commerce companies would still be able to maintain healthy financial positions in the face of surging US tariffs - if they fine tune their business models with long-term planning, according to analysts.
This came after the US on Monday revoked a long-standing de minimis rule that allowed packages worth less than US$800 to enter the country duty-free, as part of measures when US President Donald Trump signed the executive order to impose an extra 10 percent tariffs on Chinese goods.
The changes, while slapping additional duties on Chinese e-commerce firms such as Temu and Shein, could still offer an opportunity for them, if they conduct shipping planning intelligently, according to Catherine Lim, a senior consumer analyst at Bloomberg Intelligence.
"Bear in mind that some of these [de minimis shipments] are very random parcels that did not require inventory planning about shipping, like what most export-oriented products do, particularly those above the US$800 threshold," Lim told RTHK.
"The biggest change I would say right now for these e-commerce sellers who are using the de minimis is that they need to adopt longer-term planning. They need to start restructuring themselves so much so that they will have enough goods ahead of time at Temu's or Shein's specified warehouses, while still being in a position to actually distribute to the local consumers, to meet the demand of the US shoppers," she said.
"That will offset the entire financial impact from the tariff hikes."
One of the ways, she suggested, was for the mainland firms to shift away from aviation transport which is around 25 to 30 times more expensive than sea freight.
Separately, Lim said she believes there still could be turnarounds in terms of the trade policies from the US, as supply chain management processes undertake new regulations while authorities from China and the US, as well as the rest of the world, take steps to address the new procedures.
"We are going to go through a rather volatile couple of months, but this is temporary," Lim said.
"Into the second half of the year, I am expecting, barring any unforeseen changes to trade policies that this will start to stabilise into the end of the year."