Domestic retailers want to buy the same stuff and sell for more?
Europe
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First, Chinese retail platforms like Temu, Shein, AliExpress and others deploy their own supply chains. Only Shein recently announced it would open up its sweatshops to other businesses, but so far this didn't happen afaik.
And, more importantly, local European retailers would immediately be shut down by the authorities if they sold the toxic and dangerous stuff sold on these Chinese platforms. They face much stricter regulations regarding consumer (and worker) protections than in China, which is one reason why they are more expansive.