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The US will end tariff exemptions for low-cost shipments from China and Hong Kong on May 2, President Donald Trump announced on April 2, taking aim at the de minimis policy that has become popular among e-commerce companies.
The decision was part of a package of trade policy changes including <a title="" href="https://asia.nikkei.com/Economy/Trade-war/Trump-reveals-reciprocal-tariffs-34-on-China-24-on-Japan2" target="_blank" rel="noopener">sweeping tariffs of up to 49%</a> on trade partners the Trump administration accuses of "unfair trade practices." The broad moves are expected to escalate a <a title="" href="https://asia.nikkei.com/Economy/Trade-war" target="_blank" rel="noopener">trade war</a> and reshaping global commerce.
The de minimis policy exempts international shipments from import taxes and customs inspections if the retail value is USD 800 or less. Trump attempted to end cheap Chinese goods in a February 1 executive order, which imposed 10% tariffs on goods from China and ended the policy. The decision was paused after it created logistical issues and overwhelmed postal services and customs with inspection of millions of low-value shipments.
Chinese packages that are considered under de minimis will be subject to a duty rate of 30% or USD 25 per item. The price per item will increase to USD 50 after June 1, according to the White House.
De minimis has allowed for "deceptive shipping practices by Chinese-based shippers, many of whom hide illicit substances, including synthetic opioids," according to a White House fact sheet.
White House officials have said Canada and Mexico are conduits for imports of fentanyl and precursor chemicals in small packages are not inspected by customs agents.
Trade experts say this will increase the costs of e-commerce goods coming from China.
Many sellers, such as <a href="/company/temu">Temu</a> and <a href="/company/shein">Shein</a>, ship orders directly from China to customers to keep prices low. The number of shipments has exploded in recent years. The volume of de minimis imports more than doubled from 2020 to 2024. There were 1.4 billion packages that entered through de minimis, including about 60% coming from China.
Those supporting the end of de minimis say Chinese e-commerce retailers have exploited the policy by shipping low-cost packages to avoid paying duties, hurting American retailers.
Chinese e-commerce players have been gradually shifting their business models, adopting domestic inventory in response to the end of duty-free packages from China.
Prices on Temu and Shein will gradually rise as the cost of securing US warehouse space is taken into account, Yao "Henry" Jin, an associate professor of supply chain management at Miami University of Ohio, said.
"Their pricing advantage are now disappearing because they now have the same cost factors that Amazon has always had," he said.
This article first appeared on <a href="https://asia.nikkei.com/Economy/Trade-war/U.S.-revokes-duty-free-status-for-cheap-China-goods-used-by-Shein-Temu">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

US revokes duty-free status for cheap China goods used by Shein, Temu

Pinduoduo

Shein

Temu

East Asia

China

On-demand Services

E-commerce

Retail

Consumer Economy

… 1080w" sizes="(max-width: 720px) 100vw, 720px" /><figcaption id="caption-attachment-152394" class="wp-caption-text">Some Dreame robot vacuums feature mechanical arms that help move obstacles, scrub away stains, and capture dust more efficiently. Photo source: Dreame via 36Kr.</figcaption></figure>
These core systems, proven in Dreame’s cleaning products, are now being integrated into refrigerators, air conditioners, and washing machines. This not only reduces R&amp;D costs but also shortens product development cycles, enabling faster iteration.
Higher prices and longer purchase cycles define the major appliance segment. Consumers often want to test products in person, and installation and after-sales support are critical to the buying experience.
Here, Dreame benefits from an existing commercial footprint. It operates more than 5,500 offline stores across over 100 countries and regions, with presence in retail chains like Walmart, Carrefour, Suning.com, and Gome. Internationally, it partners with distributors such as MSD, Boulanger, and Coolblue.
whereRelatedArticle
By extending its tech stack into new product lines, Dreame creates a compounding effect—where strengths in R&amp;D, manufacturing, and distribution reinforce one another across categories.
Market timing also works in its favor. Backed by government subsidies and green consumption incentives, China’s home appliance sector saw both sales volume and average prices rise in 2024. Retail sales in the first three quarters of the year even exceeded pre-pandemic peaks from 2019.
Factor in a typical replacement cycle of 10–12 years, and it’s clear the global market is entering a major refresh phase. For companies like Dreame, that opens the door to win share—if they can execute with precision.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3225666046508422">article</a> was written by Huang Nan for 36Kr.

Dreame is bringing its machines into your kitchen—and it’s just getting started

Dreame

Deep Tech

Late on March 29, a fatal crash involving a Xiaomi SU7 took place on an expressway in Anhui, leaving three people dead. The incident quickly gained national attention.
By April 1, <a href="/company/xiaomi">Xiaomi</a> founder and CEO Lei Jun had taken to Weibo, saying the company would continue cooperating with the police, monitor developments closely, and do everything it could to address the concerns of the victims’ families and the wider public.
The crash triggered a steep drop in Xiaomi’s stock price and sparked a broader debate over the safety of its vehicles and smart driving systems. International media coverage followed, focusing heavily on the severity of the accident.
Just weeks earlier, Xiaomi had announced plans to launch its vehicles overseas by 2027. Now, that ambition is under fresh scrutiny. Overseas outlets have zeroed in on unverified reports that the car doors may have jammed and that a battery explosion occurred—details that, if left unaddressed, could heighten concerns not just around Xiaomi, but around Chinese new energy vehicle (NEV) brands as a whole.
In today’s competitive global automotive market, the "Made in China" label is facing a new stress test. In emerging markets such as Southeast Asia and the Middle East, consumers often have little patience for safety lapses. In mature markets like Europe and the US, brand credibility and long-term tech performance matter just as much—if not more.
Chinese NEV exports are nothing new. Established players like BYD, MG, and Geely are already on the road overseas, joined by newer names like Xpeng Motors, Li Auto, and Neta. But high-profile incidents like this risk reinforcing long-standing concerns, potentially creating new headwinds for global expansion. It also raises the stakes for transparent communication and safety education. Some automakers, like Zeekr, have already begun showing users how to manually override electric door locks in emergencies.
One key debate sparked by the crash centers on smart driving: how much responsibility does driving assistance technology bear when tragedy strikes?
Xiaomi said the vehicle was in navigate-on-autopilot (NOA) mode, traveling at 116 kilometers per hour. The system detected an obstacle and began to slow down. One second later, NOA disengaged, handing control back to the driver. The crash occurred within the next one to two seconds.
whereRelatedArticle
Xiaomi had previously highlighted the SU7’s 16 standard safety features, including automatic emergency braking (AEB). That claim has prompted further questions: was AEB active at the time of the crash? In response, Xiaomi clarified that the standard SU7 includes forward collision warning (FCW) and AEB, designed to detect vehicles, pedestrians, and two-wheelers. The AEB system operates at speeds between 8–135 km/h, but like others in the industry, it doesn’t respond to cones, water barriers, animals, or rocks. That limitation underscores a broader disconnect between what users expect and what current AEB systems can actually do.
Smart driving is now a key differentiator for many brands, and its adoption is growing fast. Between January and November 2024, 1.75 million NOA systems were installed as standard in passenger cars in China, according to the Gasgoo Research Institute.
As Chinese automakers move beyond domestic borders, their smart driving solution providers are following suit—sometimes in step, sometimes on their own. Markets with more permissive regulatory environments, like the Middle East, offer attractive testing grounds. But in places like Europe, stringent regulations still pose challenges—from tech specs and data security to road testing and legal liability. Even Tesla’s “Full Self-Driving” (FSD) system hasn’t been widely approved there. In that context, the Xiaomi crash may prompt even deeper scrutiny of China’s smart driving technologies and stall overseas deployment.
China’s carmakers have made enormous strides in smart mobility at home. But exporting those innovations brings a new set of hurdles—chiefly, whether they are safe, reliable, and legally viable in other markets.
This isn’t just Xiaomi’s problem. It’s an inflection point for the entire sector, which is now juggling rapid innovation, cost pressures, and a push for global growth. Whatever the platform—mechanical or digital—one principle should remain constant: safety and human utility must come first.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3232922252263049">article</a> was written by Chang Weiqian and Shi Yi for 36Kr.

Recent SU7 crash tests Xiaomi’s EV ambitions—and China’s credibility abroad

Transportation

Electric Vehicles

Mobility

Chery is reshuffling the deck again.
Several electric vehicle models that once sat under its iCar sub-brand are being pulled back into the company’s flagship label. According to multiple sources familiar with the matter, the QQ Ice Cream, eQ1, and eQ5—each aimed at different corners of the EV market—will now fall under the direct oversight of Li Xueyong, general manager of Chery’s automotive sales division.
At the same time, a new model is waiting in the wings. Dubbed the QQ Duomi, the EV was shown behind closed doors at a dealer summit in Wuhu and is slated to launch shortly after its April 2 reveal.
The QQ Ice Cream and eQ1 are <a href="https://kr-asia.com/chinas-micro-evs-are-filling-europes-streets-but-for-how-long">compact, budget-friendly EVs</a>. The former, priced below RMB 50,000 (USD 7,000), sold 67,800 units in 2023. The eQ1, which ranges between RMB 50,000–70,000 (USD 7,000–9,800), moved 29,400 units last year. Meanwhile, the eQ5 sits higher up the ladder—a midsized SUV priced around RMB 150,000 (USD 21,000).
All three models had been under iCar, a sub-brand introduced ahead of Auto Shanghai 2023 with a youthful, tech-forward image. But this year, they’ve been folded back into the core Chery brand, signaling a recalibration of the company’s approach to market segmentation.
Chery currently manages five brands: Chery, Jetour, Exeed, iCar, and Luxeed. Among them, Chery remains the most recognizable, with mainstream models like the Tiggo 8 and Arrizo 8 forming its backbone.
<figure id="attachment_150423" aria-describedby="caption-attachment-150423" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="wp-image-150423 size-large" src="https://console.kr-asia.com/wp-content/uploads/2024/10/Jetour-T2-1024x683.jpg" alt="Photo of the Jetour T2." width="1024" height="683" srcset="https://console.kr-asia.com/wp-content/uploads/2024/10/Jetour-T2-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/10/Jetour-T2-300x200.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2024/10/Jetour-T2-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2024/10/Jetour-T2.jpg 1080w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-150423" class="wp-caption-text">Jetour has been one of the few bright spots among Chery’s sub-brands, with its T2 model (pictured) gaining solid traction in Dubai. Photo source: Jetour.</figcaption></figure>
Internally, iCar has already gone through a leadership transition. Zhang Hongyu, its former general manager, has been reassigned to head domestic operations. Su Jun, previously CEO of Smartmi, now leads the sub-brand.
The two executives bring markedly different playbooks. Zhang emphasized technical specs and performance benchmarks. Su, shaped by his consumer tech background, is said to be pushing iCar in a more trend-conscious direction—perhaps better aligned with the younger demographic it wants to capture.
Reassigning the QQ Ice Cream, eQ1, and eQ5 is just the start. More iCar models are likely to be reevaluated, and internal restructuring is already underway.
The QQ Duomi, Chery’s newest addition to its EV portfolio, is essentially a rebadged version of the Kaiyi Shiyue Mate—a compact five-door, five-seater micro EV produced by Kaiyi Auto. The Shiyue Mate currently sells for RMB 59,800 (USD 8,372), and the Duomi is expected to carry a similar price tag with only a slight markup.
The two cars share key features, including fast and standard charging options. But the Duomi will differ in one critical area: its battery. While the Shiyue Mate runs on CATL battery packs, Duomi is expected to use cells from Gotion High-tech. Chery will handle the battery assembly in-house, drawing on its own systems for thermal management and power distribution.
Chery chairman Yin Tongyue once described the company as <a href="https://kr-asia.com/can-chery-establish-a-foothold-in-the-new-energy-vehicle-industry">“early to rise, but late to gather momentum”</a> in the EV race. In 2023, he set an ambitious target: to climb to third place in the EV market by mid-2024—and to be “within sight of Wang Chuanfu,” invoking BYD’s CEO as the benchmark.
But Chery closed 2024 shy of that goal, with under 600,000 EVs sold—enough for fourth place behind BYD, Geely, and Chang’an Automobile, despite a 232.7% year-on-year increase.
Now, the strategy is clear: flood the market with new models in the hopes of catching fire. The QQ Duomi is one of many small bets in this broader volume game. There’s no official sales target for the car, just the expectation that it will help nudge the company’s numbers upward.
All of this feeds into another priority—Chery’s long-anticipated IPO. With plans to go public in the second half of the year, the company is working against the clock to improve its sales ratio and present a stronger case to investors.
Until then, Chery is doubling down on rapid-fire product releases and plans to roll out more advanced driver assistance features across its lineup. It’s a volume-first approach, underpinned by a sense of urgency.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3232872085569158">article</a> was written by Fan Shuqi for 36Kr.

EVs under iCar revert to Chery label in brand rethink

Chery

… largest, followed by business, then government. Commercialization strategies need to balance feasibility with market size.
<h3>36Kr: Once embodied AI models mature, will we finally get general-purpose humanoid robots? What are the remaining hardware bottlenecks?</h3>
HF: On the hardware side, challenges include dexterous hands, dynamic bipedal locomotion, resistance to external disturbances, battery life, and sensory tools like force sensors or electronic skin.
None of these can be solved by AI alone. These are fundamental science and engineering challenges—things like materials and motor power density.
Humanoid robots will hit roadblocks in those areas. Embodied intelligence will be bottlenecked by model capability.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3229580146195587">article</a> was written by Wang Fangyu for 36Kr.

This startup thinks large models will finally make robots useful

Artificial Intelligence

Embodied Intelligence

Foundation and Large Models

… part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

China launches "action plan" to spur consumption, lock in retail upswing

Consumer Services

Hong Kong

… wireless Bluetooth earbuds, it’s only natural for hardware giants to enter this space,” said a former engineer from a leading international tech company.
<h3>Consumer-grade hearing aids: A chance for newcomers?</h3>
As AI levels the playing field by narrowing the technology gap, could the new generation of hearing aid companies get closer to challenging the dominance of the “big five?”
One potential advantage lies in the increased public awareness of hearing aid products after years of market education by industry pioneers. For instance, some e-commerce insiders have observed a decline in the number of consumers opting for low-cost sound amplifiers and a growing preference for professionally fitted hearing aids.
Meanwhile, the emergence of new manufacturers provides consumers with more choices, including the popularity of over-the-counter (OTC) hearing aids.
To understand this shift, it’s essential to consider the revenue model of hearing aids. The primary distinction between medical- and consumer-grade products is whether professional fitting is required. Medical-grade hearing aids are typically purchased from brick-and-mortar stores, where audiologists fine-tune the device to match the user’s individual needs. This process can take three to six months. In contrast, consumer-grade hearing aids can be bought and used directly online.
Price-wise, industry insiders generally consider RMB 4,000 (USD 560) as the dividing line. Medical-grade hearing aids from the “big five” typically sell for RMB 5,000–40,000 (USD 700–5,600) per unit (with potential discounts), while top-tier Chinese brands sell for RMB 5,000–20,000 (USD 700–2,800). Meanwhile, consumer-grade hearing aids are priced RMB 1,500–4,000 (USD 210–560).
The significant price gap is partly due to the cost of professional services. “Compared to consumer-grade products, medical-grade hearing aids incorporate more advanced algorithms and applications, making the hardware cost slightly higher. But to be honest, the cost difference alone doesn’t justify a tenfold increase in price. Much of the price difference is attributed to the value added by professional services,” the former engineer said.
Although there have been voices within the industry suggesting that products and services should be charged separately, this is difficult for manufacturers to implement, as there is limited acceptance of medical service fees in China.
Some manufacturers believe that by eliminating this cost, consumer-grade hearing aids can potentially capture a share of the market through a low-cost strategy veering close to the RMB 1,000 range.
For example, iFlytek mentioned in its prospectus that revenue from its smart hardware segment reached approximately RMB 6.2 million (USD 868,000) in the first half of 2022 and surged to RMB 29 million (USD 4.1 million) in the first half of 2023, driven in part by the launch of its hearing aid product in May 2022. As of early this year, iFlytek’s registered smart hearing aid users have reportedly exceeded 110,000.
However, opting for the consumer-grade route doesn’t guarantee success. In Liang You’s view, the ability to purchase and fit hearing aids independently does not absolve manufacturers of the need to provide professional support.
“Since these are still hearing aids, companies must offer follow-up services to ensure that the product does not harm the user’s hearing during use. Moreover, when users encounter issues, manufacturers should be ready to provide remote assistance,” Liang You said.
Wang echoed this sentiment, stating that while consumer-grade hearing aids will “undoubtedly become an integral part of the market,” current products still fall short of fully replacing professional audiologists. “They can handle some basic functions like hearing assessment, fitting, and usage, but they are still a long way from acting as virtual audiologists capable of providing comprehensive services.”
At the end of the day, while hearing aids carry a “medical” label, purchasing decisions are heavily influenced by individual consumer preferences and needs. In the short term, the market structure dominated by the “big five” is unlikely to be disrupted. However, in the longer term, factors such as product pricing, the development team’s understanding of the language environment, and the quality of after-sales service will likely become key differentiators.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3217264068234115">article</a> was written by Hu Xiangyun for 36Kr.

Can AI finally help hearing aids deliver in noisy environments?

… not to pioneer an entirely new field but to perfect an existing niche. From this perspective, Sharge’s products may not be groundbreaking or radically daring. Yet, through relentless focus and attention to detail, the company managed to rise above Shenzhen’s hardware sector—often referred to as a “graveyard” for aspiring companies.
Sharge’s future, however, is not without its challenges. As battery material costs continue to decline, the cost of power bank production is expected to drop, intensifying price competition in the short term. To counter this, Sharge intends to maintain its high-end positioning while expanding its product portfolio.
One area of focus is power solutions for photography equipment and drones, where reliable, high-performance charging is critical. Another growth avenue is the burgeoning sector of AI-powered hardware, where battery life is becoming a pressing concern.
“As demand for computing power grows, power supply will likely become a bottleneck,” Zhang said. Sharge is already developing specialized chargers for AI-driven products, including wearable power banks that free up users’ hands and dedicated charging equipment for AI devices.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3221518797294721">article</a> was written by Huang Nan for 36Kr.

This company sells power banks and chargers that cost twice as much—and still has a cult following

Batteries

Energy

… they are pulling off some truly cool moves!
Compared to cooperative games like Overcooked, Split Fiction’s difficulty remains well within a manageable range. Overcooked’s chaotic gameplay often exhausts players after just a few rounds, while Split Fiction consistently gives players the feeling that one more try will suffice.
Another detail worth noting: Hazelight avoids back-to-back difficult levels.
After solving a challenging section that requires quick reflexes or problem-solving, the game usually follows with a relaxing interlude—whether it’s a simple lock-pulling task or bouncing between strong adhesive platforms. This design approach keeps players immersed in a state of flow, while a steady stream of positive reinforcement strengthens the bond between them.
<h3>Outstanding cinematic storytelling, but…</h3>
Fares, despite his background as a film director, still struggles to break free from formulaic and conventional storytelling in Split Fiction. The result is a script that feels like a cookie-cutter Hollywood blockbuster, paired with a narrative that lacks the immersive depth found in top-tier interactive storytelling.
The game’s two protagonists are a pair of complementary writers. One is a reserved, realist sci-fi enthusiast, and the other an extroverted, romantic fantasy lover. Through their unexpected adventure, they gradually understand each other and forge a deep friendship. Along the way, they also confront and heal the wounds left by their dysfunctional childhoods.
Ironically, despite Fares’ infamous rant against the Oscars at TGA, Split Fiction’s story feels no different from the predictable plots of mainstream Hollywood films.
But the bigger issue lies in the game’s narrative approach.
Although the game’s cinematic storytelling is visually spectacular—complete with thrilling chase sequences, explosions, hijackings, last-second rescues, and perfectly timed camera work—it ultimately relies too heavily on cutscenes. Unfortunately, this comes at the expense of interactive narrative, marking a regression from its predecessor.
Interactive storytelling occurs when the narrative unfolds through gameplay. In The Last of Us, for example, Joel and Ellie’s journey gradually deepens their bond through shared challenges, ultimately leading to Joel’s morally complex decision to save Ellie over the world. Without this, the narrative would merely be a typical Hollywood road movie.
The magic of interactive storytelling lies in the moments where Ellie saves Joel from danger, offers helpful hints during puzzles, or shares heartfelt conversations during quiet moments. This continuous companionship during gameplay allows players to empathize with Joel’s final decision.
It Takes Two achieved a similar narrative effect.
In the game, May and Cody’s marriage was on the brink of collapse. The game subverted traditional gender roles: May was the breadwinner and family provider, while Cody was a stay-at-home dad managing household chores. This character dynamic was consistently reflected in the game’s mechanics. May wielded the hammer, handling combat, while Cody used the nails, focusing on support. Throughout the game, their division of labor reinforced this theme, making the emotional stakes resonate deeply with players.
However, Split Fiction falls short in this regard.
The introverted-extraverted dynamic between Mio and Zoe is barely reflected in the gameplay. Their contrasting personalities—one impulsive and the other cautious—only emerge through cutscenes and dialogue. With a weaker connection between narrative and gameplay, the abundance of cutscenes becomes an opportunity for players to check their phones. As a result, the emotional connection to the two protagonists is far less impactful than what players experienced with May and Cody.
<h3>Is there room left for Hazelight to innovate?</h3>
All in all, even amidst a crowded 2025 release schedule, Split Fiction has secured a likely spot in the TGA nominations. Hazelight’s mastery of the split-screen co-op genre remains unmatched, and the creativity showcased raises expectations for its next project.
However, it’s important to acknowledge that no matter how expansive the gameplay mechanics are, there’s always a limit.
The real challenge lies in stitching together diverse mechanics without making the experience feel disjointed—and ideally, adding a fresh twist. As the game progresses into the later chapters, especially the fourth and fifth chapters, a noticeable sense of repetition begins to creep in.
The constant high-paced gameplay can also lead to fatigue and information overload for some players. Hazelight has now leaned on this approach of “throwing everything at the player” across three consecutive games, relying on an overwhelming variety of mechanics to sustain the feeling of novelty.
As the saying goes, the third time’s the charm. If Hazelight’s next co-op game continues down this path—exploring every conceivable gameplay style to keep players engaged—it begs the question: is there any room left to innovate?
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3222734297566088">article</a> was written by Xue Dexing for 36Kr.

Split Fiction keeps co-op gaming fresh, but Hazelight may be running out of tricks

Gaming

Creative

Europe