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Temu owner's shares slump as China slowdown hits sales


US-listed shares of the e-commerce giant fell nearly 11% on Thursday following the announcement.

While PDD's Chinese e-commerce platform, Pinduoduo, has become popular because of its focus on low-cost and heavily discounted products, a growing number of rivals have been adopting similar strategies, triggering a price war. "There’s uncertainty on potential tariff change and increasing pushback from more countries related to its 'cheap' prices," said Alicia Yap, an equity research analyst at Citi, before the results were announced. And, in the US, President-elect Donald Trump has vowed to raise tariffs on imports of Chinese goods, potentially removing Temu's competitive advantage by driving the prices of its super-cheap products.

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