China's E-Commerce Exports Slump 10.9%, Squeezed by Fuel Costs and Inflation

China's low-cost e-commerce exports fell 10.9% year-over-year to $9.81 billion in April. This marks the fifth consecutive month of decline for the sector. The downturn impacts major platforms including Temu, Shein, and Alibaba's AliExpress.

Rising jet fuel costs from geopolitical tensions and weakening demand from inflation-hit consumers in the U.S. and Europe drove the decline. The business model of air-shipping inexpensive goods directly from Chinese factories faces significant pressure.

Previous challenges include the removal of U.S. customs waivers on low-value parcels. Some platforms are now expanding warehouse capacity in Europe to reduce high freight expenses.