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New but already important channel for trade

By FAN FEIFEI in Beijing and YANG JUN in Guiyang | China Daily | Updated: 2022-02-22 10:06
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Employees of a cross-border e-commerce park in Ganzhou, Jiangxi province, promote sales of furniture via livestreaming. [Photo/Xinhua]

As one of the earliest universities engaged in e-commerce research in China, Zhejiang Gongshang University is the only university in Zhejiang that offers bachelor's, master's and doctoral degrees in cross-border e-commerce.

"The establishment of the cross-border e-commerce college will help alleviate talent shortages and lay a foundation for the long-term healthy and rapid development of the cross-border e-commerce industry," said Zhang Zhouping, a senior analyst on business-to-business and cross-border activities at the Internet Economy Institute, a domestic consultancy.

Zhang said cross-border e-commerce is set to play a bigger role in bolstering the development of foreign trade during the 14th Five-Year Plan period (2021-25).

Digital transformation has emerged as a key pathway to hedge against the impact of the pandemic on traditional trade, Zhang said, noting more and more enterprises have attached great importance to cross-border e-commerce as it becomes a vital channel for foreign trade enterprises to access new markets.

China's cross-border e-commerce, which features online marketing, online transactions and contactless payments, has been growing exponentially over the past few years, particularly during the last two years when the pandemic impeded business travel and face-to-face contact.

The Ministry of Finance and seven other central departments on Monday issued an announcement to optimize and adjust the imported retail goods list for cross-border e-commerce from March 1.

A total of 29 commodities with strong demand from consumers in recent years, such as ski equipment, dishwashers and tomato juice, have been added to the imported products list, said the announcement.

Earlier this month, the State Council approved setting up more cross-border e-commerce pilot zones in 27 cities and regions as the government seeks to stabilize foreign trade and investments.

The new pilot zones, including those in Erdos in the Inner Mongolia autonomous region and Yangzhou in Jiangsu province, will replicate and advance the experience gathered from the previous five batches of pilot zones, said a statement released by the State Council.

The move has brought the overall tally of pilot zones to 132, covering almost all provincial-level regions in China from coastal industrial powerhouses such as Jiangsu, Zhejiang and Guangdong provinces to inland areas.

While trying to promote the high-quality development of trade, authorities concerned emphasized efforts to ensure national security, internet security, data security, and biological security to foster an amicable business environment for market entities.

The country began setting up cross-border e-commerce pilot zones as early as 2015 in Hangzhou, Zhejiang province. In these pilot zones, a variety of services such as logistics, payment, taxation and Customs clearance have been provided to facilitate enterprises' cross-border e-commerce businesses.

The import and export volume of China's cross-border e-commerce totaled 1.98 trillion yuan ($311.5 billion) in 2021, up 15 percent year-on-year, according to the General Administration of Customs. E-commerce exports stood at 1.44 trillion yuan, an increase of 24.5 percent on a yearly basis.

Bai Ming, deputy director of international market research at the Chinese Academy of International Trade and Economic Cooperation, said China's cross-border e-commerce pilot zones have gradually expanded from coastal areas to inland regions, with a more balanced spatial distribution.

He noted the establishment of more cross-border e-commerce pilot zones fully reflects the country's determination to further expand opening-up by leveraging cross-border e-commerce and other new forms of foreign trade, promote the dual-circulation development pattern, stabilize foreign trade and foreign investment, and bolster the high-quality development of trade.

"Digital tools and digital transformation are the key factors for global micro, small and medium-sized enterprises, or MSMEs, to survive and thrive in the unpredictable COVID-19 era," said Diane Wang, founder, chairwoman and CEO of DHgate, a leading Chinese cross-border B2B e-commerce platform.

Relying on the resilience of China's supply chain, DHgate has empowered global MSMEs with some capabilities like more data flow, deeper understanding of customer demand as well as a more tailor-made product portfolio to help them succeed in the challenging business environment, Wang said.

DHgate data showed its top five importing countries are the United States, the United Kingdom, Australia, Canada and France, where Chinese goods are welcomed. There is also increasing demand from emerging markets such as Seychelles, Zimbabwe and Senegal.

DHgate has seen a steady increase in sales of stay-at-home products and a slow recovery in outdoor products. Home appliances, consumer electronics, apparel, toys and outdoor sportswear have also gained popularity among overseas consumers.

In addition, online shopping via livestreaming videos has been favored by B2B buyers in the US.The bestselling products for B2B buyers during livestreaming sessions include mobile accessories, toys, gifts, digital products like mini Bluetooth speakers and wireless headsets, DHgate said.

Wang said the global supply chain has suffered from unprecedented pressures from COVID-19, resulting in product shortages, lack of efficiency, disruption and so on. The company has fully leveraged its 11 warehouses worldwide, which prestored the bestselling products in the key markets even before they were purchased, especially during sales festivals.

Ymatou, a Shanghai-based cross-border e-commerce platform, is beefing up efforts to provide supply chain services for livestreaming platforms and key opinion leaders.

Zeng Bibo, founder and CEO of Ymatou, said the pandemic has directly driven the integration of livestreaming and cross-border e-commerce, given that Chinese consumers could not go abroad to buy overseas products. The company will make more efforts to optimize the supply chain, improve logistics and distribution efficiency, and enhance consumer service, Zeng said.

Zhang Li, director of the e-commerce research institute affiliated with the Ministry of Commerce, said cross-border e-commerce has become an important channel for China's foreign trade during the pandemic period, and played a vital role in fostering the growth of foreign trade.

The pandemic has posed a challenge to logistics and distribution, said Zhang, adding China's cross-border e-commerce logistics companies have ensured the timely delivery of commodities through chartered flights and overseas warehouses.

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