The only thing that Temu subsidizes is shipping, the pricing itself is normal. Temu is essentially a window for US consumers to see what the average Chinese consumer is used to. You can directly compare products and prices between Taobao and Temu; the pricing is similar, with Temu typically being a bit more expensive even with discounts.

Even with shipping, it’s unclear exactly how much Temu would actually be losing per order depending on how efficient their distribution network is.