Foto: chormail – Freepik.com
China is currently experiencing a boom in cross-border e-commerce (CBEC). More than 80,000 companies are active in this sector, and the export of inexpensive products via online platforms has become a driver of the Chinese economy. Even if the CBEC occurs in both directions, the balance is clear: for every dollar imported, ten dollars are exported. This rapid growth has prompted governments from Southeast Asia to the US and EU to take measures to curb this flow of trade.
75 new e-commerce companies in China every day: rapid expansion
The numbers speak for themselves: 75 new CBEC companies are registered in China every day – that’s one new company every twenty minutes. This rapid expansion is supported by various government initiatives, including optimizing comprehensive pilot zones and promoting Silk Road e-commerce under the Belt and Road Initiative.
Figure 1: Chinese customs-registered company for cross-border e-commerce. Source: Soapbox
In 2023, China saw an increase in cross-border e-commerce volume a 15.6%which corresponds to a total value of 2.38 trillion renminbi (just over 300 billion euros). These figures highlight the growing importance of CBEC to the Chinese economy and the global trading landscape.
The effects of this boom are far-reaching. For Chinese companies, the CBEC offers an opportunity to enter new markets and expand their reach. At the same time, foreign markets face the challenge of dealing with the flood of Chinese products. This has led to discussions about possible regulatory measures to make competition fair.
USA defends itself: measures against China’s e-commerce giants
The US in particular has taken measures to curb the influence of Chinese e-commerce companies such as Shein and Temu. The Biden-Harris Administration has announced new measures to protect American consumers, workers and businesses by cracking down on abuses of the de minimis rule. This regulation allows goods worth up to $800 to be imported into the USA duty-free. The number of such shipments has increased exponentially in recent years, making it difficult to enforce U.S. trade laws. The new measures aim to block the import of unsafe and unfairly traded products and ensure compliance with health and safety regulations.
The future of cross-border e-commerce in China looks bright. With continued investment in technology and infrastructure, as well as support from government initiatives, this sector is expected to continue to grow and play an even greater role in global trade. But resistance abroad will probably also grow.
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