A Reality Check for Temu

During its rapid ascent to the top of the global fast-fashion food chain, Temu looked like the perfect hedge for its Chinese owner, PDD Holdings, against a weak domestic economy.

But trouble is following it abroad.

PDD Holdings’ stock lost more than one third of its value last week after it warned that growth will likely decelerate, both for its Pinduoduo marketplace in China and Temu in Europe and North America.

That China’s economy is…