Policy package to lift cross-border e-commerce

China has rolled out a package of policy measures to expand cross-border e-commerce and scale up the construction of overseas warehouses.

This is part of the government's efforts to foster new engines for foreign trade and drive economic growth in the long run.

By tapping into new foreign trade formats and leveraging efficient logistics infrastructure, Chinese businesses can seize new growth opportunities and strengthen their competitiveness on the international stage, experts said.

Cross-border e-commerce, together with new infrastructure such as overseas warehouses, will streamline processes, provide direct access to consumers, and contribute to the optimization and stability of China's foreign trade structure, the Ministry of Commerce said in a joint notice with eight other departments on Tuesday.

China's cross-border e-commerce sector has experienced significant growth over the past five years, with the trade volume increasing by over tenfold. In the first quarter, the total trade value of cross-border e-commerce reached 577.6 billion yuan ($79.63 billion), up 9.6 percent year-on-year, according to the ministry.

The number of cross-border e-commerce entities nationwide has exceeded 120,000, and over 1,000 cross-border e-commerce industrial parks have been established, the ministry added.

Going forward, the country will take proactive steps to further cultivate and support cross-border e-commerce players, including collaborative partnerships between localities, with cross-border e-commerce platforms showcasing and promoting locally produced goods, according to the notice.

Moreover, China is encouraging universities to offer courses related to cross-border e-commerce and foreign languages through both full-time and part-time programs. This initiative aims to provide talent for export-oriented enterprises in the cross-border e-commerce sector, enabling them to explore emerging markets effectively, the notice said.

Financial institutions are encouraged to develop specialized financial products and solutions that are designed for cross-border e-commerce enterprises with genuine trading activities, the notice said.

By providing financial support, institutions play a vital role in enabling businesses to manage cash flow, expand their operations, and invest in new technologies and marketing strategies, said Bai Ming, a researcher at the Chinese Academy of International Trade and Economic Cooperation.

This is particularly important for small and medium-sized enterprises, which often face greater challenges in accessing traditional financing channels, Bai added.

In the competitive landscape of the cross-border e-commerce market, efficient overseas warehouses and well-structured supply chains are emerging as a competitive advantage for cross-border enterprises, experts said.

Data released by the ministry show that the number of overseas warehouses exceeds 2,500, covering a total area of over 30 million square meters. Among these, more than 1,800 are specifically dedicated to serving the needs of cross-border e-commerce, with a combined area surpassing 22 million square meters.

China will promote a market-driven approach and encourage private sector participation in supporting businesses in the overseas warehouse sector. Additionally, efforts are underway to encourage the establishment of overseas warehouses along the China-Europe Railway Express lines, according to the notice.

Overseas warehouses have emerged as vital links in the supply chain of cross-border e-commerce, characterized by their ability to facilitate fast Customs clearance, swift delivery, rapid turnover, efficient services, and lower costs, said Wang Jingwen, director of the Macro Research Center affiliated with the China Minsheng Bank Research Institute.

By leveraging the benefits of overseas warehouses, businesses can enhance their global presence, improve customer satisfaction, and achieve competitiveness in the international marketplace. As cross-border e-commerce continues to thrive, overseas warehouses will be instrumental in shaping the future of international trade infrastructure, Wang added.

The ministry will also incorporate cross-border e-commerce as a key topic in free trade agreement negotiations, in order to facilitate the establishment of fair and transparent rules and enhance cross-border e-commerce cooperation between nations.