The leader of MercadoLibre Inc’s operations in Argentina has advocated for stricter regulations concerning the rapidly expanding Chinese e-commerce platforms in Latin America, cautioning that a lack of equitable competition poses risks to local enterprises and employment opportunities. “It’s important to have a good regulatory framework that’s equal for everyone competing,” Juan Martín de la Serna stated, in response to inquiries regarding the increasing presence of platforms such as Temu and Shein in the region. “Regulations hold significant importance, equally in finance and in commerce.” MercadoLibre executives have delivered one of the most explicit critiques to date concerning the swift expansion of Temu, Shein, and other Asian e-commerce competitors in the region. Latin American governments are increasingly aware of the situation. Mexico, Chile, and Uruguay have implemented measures this year to tighten tax and import regulations on low-cost goods from China, aiming to safeguard domestic retailers.
In the first half of 2025, Temu’s monthly active users in the region increased by 143 percent to reach 105 million compared to the previous year, as per reports. MercadoLibre, recognized as Latin America’s largest e-commerce entity, is poised to conclude the year with an employee count exceeding 112,000, predominantly associated with its logistics framework. The company has exhibited remarkable performance in recent years, achieving 27 consecutive quarters of annual growth exceeding 30 percent. De la Serna indicated that the surge of inexpensive, subpar imports from China poses a threat to small and medium-sized enterprises, which represent approximately 90 percent of MercadoLibre’s sales volume. He noted that the emergence of new competitors “obligated us to raise the bar and do things that perhaps we wouldn’t have done in the past, being more aggressive in terms of investments, and improving our logistics network.” Nonetheless, he cautioned that employment opportunities in the area were under threat.
“When you open up the market indiscriminately and an Asian, Chinese firm sends you product by ship,” he stated, “in reality you’re giving work to Chinese companies, not Argentines.” De la Serna emphasized Argentina’s economic volatility as an obstacle to MercadoLibre’s growth in its country of origin. While the company possesses over one million square metres of logistics space in Brazil and nearly 970,000 in Mexico, its capacity in Argentina has remained stagnant at 65,000 square metres for years, he noted. The investment this year amounted to US$65 million in a new logistics hub located outside Buenos Aires. “Stability and the ability to plan ahead have always been more difficult,” he stated, though he noted that “conditions are significantly better than where we were coming from.”
The seasoned executive reflected on the arrival of Amazon Inc in Brazil approximately ten years ago, which intensified competition for his company. He expressed openness to competition from the US rival, yet delineated a clear distinction regarding the competitive landscape posed by China. “They compelled us to elevate our standards and adopt a more aggressive stance,” he remarked, alluding to Amazon’s influence in Brazil. However, “what seems important to us is to differentiate – generally these Asian companies are selling low-quality products.”