The Biden-Harris administration has announced it’s proposing to take regulatory actions to cut down on what it describes as “overuse and abuse” of a trade loophole, with senior administration officials saying they’re concerned about how e-commerce giants Temu and Shein have relied on the loophole.

The Biden administration has announced plans to tighten trade regulations that have allowed Chinese-linked online retailers Shein and Temu to dominate the U.S. market with rock-bottom prices.

Measures tightening customs waivers on low-value shipments of foreign goods going directly to U.S. consumers may undercut allegedly unfair cheaper pricing by Chinese e-commerce companies Shein and Temu.

The Biden administration is intensifying efforts to curb cheap imports from China, targeting e-commerce platforms like Shein and Temu that have taken advantage of the “de minimis” rule to bypass tariffs on low-value shipments.