Cross-border E-commerce Has Become An Important Force For Stabilizing Foreign Trade

- Mar 29, 2021-

The Ministry of Commerce and other six departments have recently jointly issued the "Notice on Expanding Cross-border E-commerce Retail Imports and Strictly Implementing Supervisory Requirements", clarifying that the cross-border e-commerce retail import pilots will be expanded to all pilot free trade zones and cross-border e-commerce The city (and region) where the comprehensive test zone, comprehensive bonded zone, import trade promotion innovation demonstration zone, and bonded logistics center (Type B) are located.

The interviewed experts said that the continuous improvement of the cross-border e-commerce retail import policy system has achieved positive results in enriching the domestic market supply, driving the development of related industries, and better satisfying the people's needs for a better life. my country's cross-border e-commerce has maintained rapid growth, and at the same time, it has promoted the transformation and upgrading of a large number of traditional trade and manufacturing enterprises, and has become an important force for stabilizing foreign trade and a new driving force for foreign trade development.

Continuous expansion of cross-border e-commerce imports

Promote the smooth flow of domestic and international markets

It is understood that in November 2018, six departments including the Ministry of Commerce issued a cross-border e-commerce retail import supervision policy, which will be piloted in 37 cities including Beijing, and will be further expanded to 86 cities and the entire island of Hainan in 2020. A few days ago, the pilot has further expanded its capacity on a large scale.

Hong Yong, an associate researcher at the Institute of Electronic Commerce, Research Institute of the Ministry of Commerce, said that the large-scale expansion of the cross-border e-commerce retail import pilot reflects the government's recognition of the effects of the preliminary pilot and confidence in the regulatory capabilities after the pilot is liberalized. At the same time, the pilot expansion will promote the coordinated development of my country's eastern, central and western regions.

"The expansion of the cross-border e-commerce retail import pilot program reflects the business sector's decentralization and service, allowing local governments to play a more important role." Professor Wang Jian of the University of International Business and Economics and director of the International Business Research Center said in an interview with a reporter from China Trade News If the local conditions are available in all aspects and there is a desire to develop cross-border e-commerce retail imports, these development demands should be met as much as possible. Especially during the epidemic period, cross-border e-commerce retail imports can play a better role in satisfying people's needs for purchasing overseas products and ensuring the smooth flow of domestic and international markets.

Wang Jian said that cross-border e-commerce connects the production end with the consumer end and has become a very important trade method for China to stabilize foreign trade. The new crown pneumonia epidemic has affected the operation of physical stores in many countries, consumers have turned to online, and the penetration rate of e-commerce in countries around the world has continued to rise. According to customs statistics, last year, my country's cross-border e-commerce imports were 0.57 trillion yuan, an increase of 16.5%.

Enterprises move to cross-border e-commerce

Platform plays an important role

Affected by the new crown pneumonia epidemic, foreign trade companies have been hindered from exploring the international market through offline channels, and small and medium foreign trade business owners who have been selling offline have switched to cross-border e-commerce. The same is true for Ma Chuanjun, general manager of Ningbo Jiaze Kitchenware Co., Ltd., but because he doesn't know anything about platforms, sales, warehousing, after-sales, etc., Ma Chuanjun has not known how to start.

Under the guidance of the Ningbo Municipal Government, 22 companies and universities jointly initiated the establishment of the China (Ningbo) Cross-border E-Commerce Alliance to help small and medium foreign trade companies avoid detours and reduce operating costs through platform sharing.

"The alliance integrates the resources of the governing units and provides us with an online sales platform. It is clear at a glance where products are sold and which products are selling well." Ma Chuanjun said that in the past, the response to overseas consumption trends was relatively lagging, and now almost every two or three The product will be updated every month, and it will be more confident in the face of overseas competition. Coupled with the fact that the goods are stored in the overseas warehouses of the governing unit, in terms of delivery timeliness, it is equivalent to standing on the same starting line with foreign sellers.

From March 18th to 20th, the first China Cross-border E-commerce Fair was held in Fuzhou. More than 72,000 professional merchants attended the fair for purchases, and the intended transaction amount was US$3.5 billion. The mainstream global cross-border e-commerce platform and the well-known national cross-border e-commerce Suppliers, service providers, high-quality foreign trade suppliers, professional purchasers, etc. have come and returned with satisfaction.

Zheng Changqing, global vice president of eBay and general manager of the China region of the International Cross-border Trade Division, who has just participated in the fair in Fuzhou, told reporters that as more and more overseas consumers become accustomed to online consumption, market demand is booming. Development has built a solid foundation for the future of cross-border e-commerce. Relying on the advantages of global platforms, strong industrial integration capabilities, mature industrial ecosystems and abundant talent reserves, eBay will continue to promote the improvement and upgrade of cross-border e-commerce ecosystems, and help Chinese sellers to further expand and strengthen cross-border e-commerce Export, to create a seamless trading platform for Chinese sellers and foreign consumers.

It is reported that at this trade fair, eBay launched a supply chain integration solution for the first time to help sellers solve the pain points encountered in product procurement channels, financial pressures, and logistics links, so as to further expand online business development and accelerate domestic companies Layout the global market.

Cross-border e-commerce model innovation

Focus on the service ecosystem

In Wang Jian's view, the model innovation of cross-border e-commerce can help Chinese companies quickly improve product design and establish a product brand image, which is of great significance to the transformation and upgrading of China's manufacturing and foreign trade.

Some companies that have been involved in cross-border e-commerce for many years have not only "transformed" their product structure in stages, but have also set their sights on new overseas markets. According to Cha Peiliang, general manager of Sichuan Rice Warehouse Company, the company is seeking new partners and is maintaining close communication with major buyers in Myanmar, Japan, Malaysia and other countries, and plans to restart overseas warehouse construction after the epidemic. "We are negotiating cooperation with Myanmar's largest state-owned enterprise and plan to build a Chinese commodity distribution center near Yangon."

Currently, new forms of foreign trade such as cross-border e-commerce are booming, but supporting facilities such as e-commerce platforms, logistics, payment, warehousing, and after-sales still need to keep up. "The government and enterprises should jointly promote the efficient and standardized development of cross-border e-commerce, strengthen supervision, and do a good job of traceability." Ma Shuzhong, dean of the China Digital Trade Research Institute of Zhejiang University, said that it is necessary to accelerate the improvement of the comprehensive cross-border e-commerce service system and further Give full play to the advantages of new business formats. Cross-border e-commerce companies should also pay attention to the global political, economic, and health and epidemic prevention situations to improve their anti-risk capabilities.

"In the future, the development of cross-border e-commerce should focus on the construction of the service ecosystem." Wang Jian said that China's cross-border e-commerce has developed to a new stage, not only traditional online cross-border trading, but more An ecosystem of services. Because the service ecosystem can mobilize global resources, so that countries, especially small and medium-sized enterprises, are integrated into the cross-border e-commerce ecosystem, participate in cooperation, and achieve a win-win situation. my country's corresponding policies and legal rules system should also be adjusted accordingly, and more support for the service ecosystem.