PDD should remember that suppliers are its driving force

Lex reports (Aug. 27) that the American Depositary Receipts of PDD Holdings, owner of Temu, a Chinese online retailer, fell nearly 30 percent as June-quarter results missed expectations. PDD is suffering from cuts by Chinese consumers and uncertainty in external markets. It also faces protests from vendors who decry unfair treatment.

Back in February, your reporters Ryan McMorrow and Nian Liu noted that sellers are the lifeblood of e-commerce platforms (“Alibaba lags Chinese e-commerce rivals on Jack Ma Boulevard,” Report, February 14).

PDD should take a cue from Japan. When the Japanese face adversity, they unite to face the challenges. PDD should strive to maintain good relationships with its suppliers and work with them to face the bleak economic situation.

Willem Thorbecke
Senior Researcher, Institute of Economics, Trade and Industry Research, Tokyo, Japan