Chinese fashion giant Temu moves headquarters to Dublin

As the U.S. government continues to scrutinise fashion companies' operations in China, some are opting for the safer havens of Europe and U.K. to expand their operations. One of these companies is Temu, the Chinese e-commerce giant that has captured the attention of Gen Z and is quickly gaining on the heels of digital fast fashion competitor Shein.

Temu's parent company, PDD Holdings, has recently relocated its headquarters from Shanghai to Dublin. PDD filed the change with the U.S. Securities and Exchange Commission last week, stating that its "principal executive offices" are now located in Dublin, Ireland.

Temu has been expanding rapidly in Europe and is now operating in the U.K., France, Germany, Italy, Netherlands, and Spain, as well as the U.S., Canada, New Zealand, and Australia. Despite this global presence, Nikkei Asia reported that Temu "has few staff overseas," and the majority of its employees are based in Guangzhou and Shanghai, where its supply chains are located.

Dublin is a popular location for tech companies due to its agreeable corporate tax structure, which has attracted businesses from Apple to Meta and Google. It seems that Temu's parent company has also been drawn to this location, potentially seeking a more favourable tax environment.

Dublin is a tax hub for tech companies

The move to Dublin may also be a strategic response to the increasing scrutiny that fashion companies are facing for their operations in China. The U.S. government has been pressuring companies to sever ties with Chinese suppliers due to allegations of forced labour and human rights abuses in Xinjiang province. By relocating its headquarters to Ireland, Temu's parent company may be attempting to distance itself from these concerns and bolster its expansion in a more stable environment, despite its supply chain being in China.