Amid increased scrutiny of Chinese companies, PDD's Temu app remains the top downloaded app in the US for the second year in a row.

• In the U.S., Chinese apps continue to thrive, with TikTok ranking third and Shein placing 12th in the latest ranking.
• The incoming Trump administration may intensify the scrutiny of Temu's success, which could negatively impact his achievements.

For the second year in a row, Temu, a widely used e-commerce app owned by PDD Holdings in China, has been ranked as the most downloaded free app on Apple's U.S. iOS store, underscoring the tremendous success that Chinese apps are experiencing in the world's largest consumer market.

Despite doubts about its ability to continue operating in the U.S., ByteDance's TikTok came in third in the ranking, while Shein, a Temu competitor and fast-fashion giant, came in at number 12.

Over 56% of the U.S. mobile phone market is dominated by Apple's iOS, according to StatCounter's data.

In 2022, Temu, a company that imports affordable products from China, entered the US market and quickly gained popularity, putting pressure on established competitors.

The US government is intensifying its scrutiny of the Chinese company, and the Trump administration has threatened to impose higher tariffs, posing a risk to the company.

Regulatory scrutiny, tariffs risks

Washington has taken notice of the growing influence of companies like Temu and Shein among American consumers due to their affordable products and aggressive marketing strategies.

The Biden administration recently unveiled a new plan to limit the misuse of the "de minimis" provision by companies such as Shein and Temu, which grants import duty exemptions for shipments valued under $800.

If Temu and Shein lose their de minimis exemption, it could increase prices and decrease the competitiveness of Chinese companies, experts have stated to CNBC.

The uncertainty surrounding the return of Donald Trump to the White House is amplified by his campaign promise to impose high tariffs on goods from China. Trump has proposed tariffs ranging from 60% to 100% on Chinese imports, but it remains uncertain whether he will follow through on this threat.

Chinese imports are also a concern for domestic markets in the U.S.

Anti-dumping tariffs have been imposed on Chinese goods in Southeast Asia by Vietnam and Indonesia, while Thailand has recently introduced measures to monitor inexpensive imports. Just two months after setting up a local presence in Vietnam, Temu was banned from operating in the country earlier this month.

The Nomura report released on Friday stated that the U.S. economics team anticipates that changes to the de minimis rule will be a significant trade priority for the Trump administration, possibly following only the imposition of higher tariffs.

Another major downside risk to China's exports to the U.S. in 2025 is represented by this.

If the US imposes a ban on all de minimis imports from China, it could decrease China's annual export growth by 1.3% and lower its GDP growth by 0.2%.