China has reported significant growth in the export of low-value clearance goods through online platforms, bolstered by the increasing popularity of Chinese shopping apps worldwide. According to recent data from Chinese customs authorities, June marked a remarkable 68% year-on-year surge in the export value of these goods, primarily driven by the cross-border e-commerce sector.
Throughout June, cross-border e-commerce exports escalated by 7.1% month-on-month, propelling this category to become China’s second-largest by export value for the month. This growth outpaced the overall export expansion rate of 8.6% year-on-year. For the first half of the year, China’s cross-border e-commerce product exports soared by 36.72% compared to the previous year, amounting to a substantial US$38.16 billion.
The rise of cross-border e-commerce in China can be attributed to several factors. Firstly, there has been a surge in global demand for affordable goods, which Chinese manufacturers have capitalized on by offering competitive prices. This has triggered a price war among manufacturers keen on attracting cost-conscious consumers globally.
Secondly, the sector has received robust backing from various levels of the Chinese government. Recently, a comprehensive 22,000-word resolution following the third plenum underscored Beijing’s commitment to establish extensive pilot zones and global distribution centers tailored for cross-border e-commerce. Additionally, leadership has advocated for the development of international logistics hubs and commodity allocation centers in regions equipped with suitable infrastructure to further stimulate sectoral growth. However, it was said that “challenges may emerge as more countries view duty-free options online as a way to bypass taxes”.
The rapid expansion of China’s cross-border e-commerce sector highlights its pivotal role in the country’s export landscape and underscores its growing influence in global markets for general merchandise. As Chinese shopping apps gain traction worldwide, facilitated by seamless online transactions and efficient logistics networks, manufacturers have seized the opportunity to bolster their international presence and cater to a burgeoning base of bargain-seeking consumers.
Looking ahead, analysts anticipate continued growth in China’s cross-border e-commerce sector, driven by sustained global demand and ongoing governmental support initiatives. With China poised to enhance its infrastructure and regulatory frameworks conducive to e-commerce, the sector is poised to remain a key driver of economic growth, further solidifying China’s position as a powerhouse in the global trade arena.
