In April 2025, Dhl signed a memorandum of understanding with Chinese e-commerce platform Temu aimed at enhancing their logistics collaboration in Europe, with a particular focus on services for small and medium-sized European enterprises. At the heart of the agreement is a shared goal: to create a more efficient, sustainable, and regulation-compliant ecosystem.
Under this agreement, Dhl will provide Temu with its integrated multimodal transport network and advanced delivery services, thereby boosting supply chain efficiency and the reliability of last-mile operations. The partnership is designed to deliver tangible benefits to both consumers and local businesses. A key pillar of the deal is the “local-to-local” model, already being rolled out by Temu.
This strategy foresees that up to 80% of the platform’s European sales will come from local suppliers, with orders fulfilled and shipped directly from warehouses located within Europe. This paradigm shift—from a system centred on imports from China to one rooted in local markets—comes in response to a changing regulatory landscape. The current duty exemption threshold for imports up to €150 is set to be abolished within the next three years, prompting operators to rethink their distribution models. In this context, Temu is acting proactively, preparing to navigate both upcoming legal changes and growing demands for transparency from EU authorities.
However, the partnership with Dhl extends beyond the European market. The two companies aim to develop a logistics infrastructure capable of supporting the growth of local SMEs in emerging markets across Eastern Europe, the Middle East and Africa. Strengthening the EMEA network forms part of a broader vision in which Dhl serves as a catalyst for Temu’s expansion into new geographic areas. Temu co-founder Qin Sun emphasised the significance of this partnership as a way to “increase consumer access to affordable products and expand growth opportunities for European sellers.”
The international backdrop to the agreement is far from calm. The announcement came just days after the United States signalled its intention to scrap the customs exemption for low-value imports from China. This move may have hastened the formalisation of the partnership, highlighting the growing influence of geopolitical dynamics on the strategic decisions of major e-commerce platforms.
Yet there are concerns. Temu’s expansion in Europe has triggered alarm among traditional e-commerce operators, consumer associations and regulatory bodies. Chief among the criticisms are product quality and safety, as well as marketing practices viewed as lacking in transparency. In this respect, the local-to-local strategy may also serve as a tool for commercial legitimacy, helping to ease political pressure and strengthen engagement with European institutions.
