The US is frantically removing millions of Chinese products from its shelves! Sellers in this category are suffering a "bloodbath"

【This article is reprinted from the WeChat public account [雨果跨境]】

Since 2025, amidst the intensifying international trade disputes, Chinese sellers' cross-border e-commerce businesses have experienced numerous setbacks. In addition to rising costs due to tariffs, various US investigations, citing "national security" concerns, have also significantly impacted cross-border sellers.

Recently, an action by the US Federal Communications Commission (FCC) resulted in the removal of millions of Chinese electronics products from online platforms.

Ⅰ.Millions of Chinese electronics products removed from shelves

Reuters reported that the office of Federal Communications Commission Chairman Brendan Carr announced that major US online retail platforms have removed millions of banned Chinese electronics products from their shelves as part of an FCC crackdown.

As part of this removal, major US e-commerce platforms like Amazon, eBay, and Walmart have proactively removed consumer electronics products from Chinese sellers, including home security cameras and smartwatches. Carr also stated that the removed Chinese electronics were either on the US list of banned devices or were not authorized by the agency. The FCC will also regulate e-commerce platforms to prevent the re-listing of these banned products.

This FCC action reportedly targets well-known Chinese technology companies such as Huawei, ZTE, Hikvision, and Dahua Technology, all of which have affected their US sales of related products.

Carr stated, "The FCC stated that this action was based on US national security concerns, citing the potential for these Chinese electronics to spy on Americans, disrupt communications networks, and pose other threats to US national security."

This "false accusation" is inherently unjustified, yet Chinese companies are facing significant losses as a result. This product removal currently affects only leading Chinese companies. Hugo Cross-border, searching keywords like "camera" and "smartwatch" on Amazon US, found that many products sold by Chinese sellers were still listed and had not yet been removed.

Foreign media reported that the products removed were numerous, encompassing categories such as video surveillance products (such as cameras, Wi-Fi security cameras, and doorbell cameras); smart wearable devices with communication capabilities (such as smartwatches and children's tracking watches); network equipment (such as wireless routers); and small appliances (such as smart door locks and intercoms).

However, the duration and scope of the FCC's crackdown remain unknown, but judging by its current intensity, it is likely to impact other Chinese sellers selling related products.

Ⅱ.The delisting crisis has not been resolved, sellers need to be vigilant!

In fact, as the US government has intensified its scrutiny of Chinese tech companies in recent years, from the TikTok ban to chip export controls and the FCC's ban on electronic devices, a systematic "technological blockade" has formed, causing heavy losses for many cross-border sellers primarily serving the US market.

In particular, the so-called "Clean Cart Operation," which directly cuts off product distribution channels through e-commerce platforms, will not only make a large number of small and medium-sized 3C electronics sellers who rely on platforms vulnerable to this "policy," but also, due to the high ambiguity of compliance and the lack of transparency in platform enforcement standards, these sellers will face unpredictable future risks. The impact and shock will be particularly profound for Chinese cross-border sellers.

According to the 2024 data report jointly released by Marketplace Pulse and several industry research institutions, Chinese sellers now account for over 50% of active sellers on Amazon's US site, achieving "quantity dominance" in the world's largest e-commerce market for the first time.

In the core electronics category, Chinese sellers have an even higher penetration rate, accounting for over 65% of sellers in this category, covering a wide range of subcategories, from smart wearables and security devices to IoT appliances. This also means that the "Clean Cart Operation" directly impacts the categories where Chinese sellers have the strongest advantage on Amazon, dealing a substantial blow to their overall revenue.

It's worth noting that while the FCC hasn't directly banned all Chinese-made electronics, focusing instead on devices with a combination of communications functionality and sensitive manufacturers, some Chinese brands' products have been spared for now. However, policy risks remain.

Sellers selling these categories and products should be particularly vigilant about potential product removals from US e-commerce platforms. If removed, sellers should make timely adjustments, such as distributing affected products to Southeast Asian or European markets, to mitigate any losses.

At this point, the "Clean Cart Operation" is not only a policy shock; it may also represent a significant industry reshuffle.

From a market perspective, while the US market is large, it's not the only one. Emerging markets such as Southeast Asia, Latin America, and the Middle East have a high acceptance of Chinese electronics products, low regulatory barriers, and are experiencing rapid growth. These markets are all worthy of investment and suitable for Chinese sellers seeking to expand overseas.

For the majority of cross-border sellers, given the current great instability in the US market, in order to ensure the long-term operation of cross-border e-commerce businesses, they must gradually reduce their over-reliance on the US market and turn their attention to emerging markets that are not affected by US policies, such as Southeast Asia, Latin America and Africa. Building a more decentralized and resilient global sales network will become a key strategy for future survival.