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It's not hardly an exploit when the taxpayer is the one benefiting
This amounts to a subsidy of Chinese manufacturing over local manufacturing.

I can’t see how a market distortion is a net benefit to the importing country.

It seems self-destructive.

If everyone bought from Temu then the net benefit would be zero relative to just including it in the price right?

In practice the value flows from people who don't buy cheap crap from China to people who do.

One might even refer to it as a "public service".
It’s a classic negative externality. Not every taxpayer partakes in this pathological consumerism.
Imagine how dysfunctional society would be if we each individually got back precisely the value to capital we put in.
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