$PDD Holdings (PDD.US)$ shares are down 3% and $Alibaba (BABA.US)$ are down 1% in intraday trading on Friday after the Biden-Harris administration announced new measures to address the overuse and abuse of a trade loophole by Chinese e-commerce platforms like Temu, Alibaba, and Shein. Temu, an online shopping platform owned by PPD Holdings, was initially established in China but has since moved its headquarters to Dublin.

Concerns have been raised about how these companies have relied on the loophole to exploit duty-free imports under the $800 "de minimis" threshold. The White House aims to reduce the range of low-value imports eligible for duty and tax exemptions, particularly targeting e-commerce giants like Temu and Shein.

White House officials announced plans to propose new trade rules that would eliminate duty-free exemptions for packages containing low-value goods subject to tariffs under Section 301 on Chinese goods, Section 232 on steel and aluminum products, and Section 201 on "safeguard" tariffs on items like solar products and washing machines.

A PDD spokesperson told Reuters on Friday that the firm's growth does not depend on the De Minimis Policy. "We are reviewing the new rule proposals and remain committed to delivering value to customers," the PDD spokesperson told Reuters.