07/21/2024
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Re: Urgent Action Needed: Chinese Retail Threatens American Economy
TLDR; China can send small parcels to the USA for free.
The discussion around the greatest threat to the United States of America's economy is critically overlooked. It typically revolves around national security threats rather than the severe consequences faced by every segment of American society due to unfair competition.
Since its inception in 1874, the Universal Postal Union (UPU) has granted China and other developing nations a substantial edge in commerce. It costs China less to ship a parcel from anywhere in the world to a U.S. home than it does for an American company to ship across the street. This advantage facilitates direct-to-consumer sales from Chinese factories, bypassing American small businesses that traditionally import in bulk—a practice vital for stimulating our entire economy. Small businesses are the backbone of the middle class. Yet, when consumers can purchase directly from China in quantities as low as one item, it undermines these American enterprises.
As a small business owner, competing against foreign firms on e-commerce platforms like Walmart, Amazon, and eBay is nearly impossible. Utilizing local fulfillment centers, Chinese manufacturers can store goods in the U.S. and swiftly deliver them to consumers, further marginalizing our domestic small businesses.
Chinese factories and trading companies are packaging goods for direct sale on platforms like Amazon, undercutting American competitors with rock-bottom prices—often as low as $0.25 profit per item they sell. This predatory pricing strategy has already shuttered countless small businesses and eliminated middle-class jobs in rural America.
Platforms such as Temu, Aliexpress, Shein, and others have established efficient networks, shipping products directly to U.S. consumers within days. This represents an imminent threat. These goods, undervalued and often labeled as "gifts," evade proper import taxes, exploiting the UPU treaty and further depriving our economy.
Temu and Aliexpress are even encroaching on the personalized gift market, competing directly with American artisans on platforms like Etsy. They replicate popular designs, severely impacting income opportunities for lower-income single mothers and other stay-at-home parents who rely on such niche markets.
In summary:
* Direct-to-consumer sales from Chinese entities pose the most significant threat to our economy.
* They drain vital revenue from our struggling postal service.
* They erode opportunities for American small businesses, resulting in widespread job losses.
* They undermine the personalized artisan market, once a cornerstone of the American Dream for many.
We urgently require the following solutions:
* Prohibit direct-to-consumer sales from China.
* Consider withdrawing from or revising the UPU treaty to impose fair trade practices.
* Bar Amazon, Walmart, and other platforms from selling goods directly sourced from Chinese entities.
* Ban repackaging services that exploit cheap labor to circumvent U.S. regulations.
As a small American business owner, I implore your assistance! Our manufacturing and e-commerce sectors are in jeopardy. A recent survey reveals businesses relying on online platforms have seen staggering declines of 50% to 70% in just a year, leading to significant layoffs, often impacting family members. They are stealing products and using our custom images to sell them on the same platforms such as Walmart.
Please act now to preserve the American Dream of small business and prevent it from becoming a fading memory.
