Openness and Cooperation Write a New Chapter for World Economy

After more than four decades of rapid development through reform and opening-up, China is not only “the world’s factory”, but also a global market. China has become the largest industrial country, the largest trader in goods, and the largest holder of foreign exchange reserves in the world. With 1.4 billion Chinese people and 400-million middle income population, China will soon become the world’s largest consumer market. In the next 15 years, China’s imports of goods and services will exceed $30 trillion and $10 trillion respectively. More importantly, China always pursues the policy of opening-up and has become the largest trading partner of more than 100 countries, providing a huge market and immeasurable opportunities for the world.

From November 5 to 10, 2019, the Second China International Import Expo (CIIE) held in Shanghai. This grand event witnessed in-depth integration of China into the world and win-win cooperation between China and countries across the globe.

The popularity of the CIIE reflects the confidence of enterprises around the world in China’s determination to constantly deepen its efforts at all-round opening-up. With the implementation of a major series of favorable policies and measures aiming at promoting opening-up at a higher level, China has constantly optimized its institutional environment. By further lowering its overall tariff level, broadening market access, shortening the negative lists for foreign investment, and promoting transparent market rules, China has endeavored to make it more convenient for various companies around the world to share its development opportunities. On October 24, the World Bank released its Ease of Doing Business Report 2020, which ranks China 31st, up by 15 places from last year’s ranking of 46th. The rise of China’s consumer market has been universally regarded as an important pillar of the steady and sustained economic growth of the country, and the primary focus of foreign enterprises to continue investing in China.

Openness and Cooperation Write a New Chapter for World Economy. More business opportunities, more development for your business. Welcome to China–Your ideal China’s Division partner.

3 Signals on Cross-border E-commerce Seen from the CIIE

On November 5, the second China International Import Expo (CIIE) opened in Shanghai. According to the data, more than 3000 enterprises from more than 150 countries and regions participated in the exhibition, and the number of participating countries and enterprises exceeded the first one. Meanwhile, T-Mall Global, Jingdong Global, VipShop International, Koala Haigou, Suning Global Outsourcing, Beibei, Yunji, Meidun Mom and other cross-border importer and e-commerce platforms have appeared in the Expo.

According to the monitoring of e-commerce large database, in 2018, the transaction scale of import cross-border e-commerce industry reached 1900 billion yuan (including B2B, B2C, C2C and o2o modes), an increases of 26.66% year on year. Since 2001, the transaction scale of import cross-border e-commerce industry has maintained continuous growth.

Release positive signals for cross-border e-commerce

The second China international cross-border e-commerce development summit, and the Cross-border E-commerce promotion trade development summit will be held during the Expo. Cross-border e-commerce has become a powerful growth point for the development of China’s foreign trade. With the introduction of the e-commerce law and new policies on cross-border e-commerce, the gradually expanded scope of application of import policies, and the continuous increase of domestic demand, cross-border e-commerce will usher in a new round of quality improvement and upgrading.

Editor of Chinadivision found, at least 3 signals can be seen from the summits.

Signal 1: many international brands take Chinese cross-border e-commerce enterprises as a bridge to enter China, strengthen international resource cooperation, and give play to the advantages of local industrial clusters.

Signal 2: domestic cross-border e-commerce platforms seek new opportunities for cooperation, promote transnational cooperation and bring more trade opportunities.

Signal 3: accelerate the development of cross-border import market to meet diversified consumer demand.

Summary of 2018: Only When the Tide Recedes Can We Know Who is Swimming Naked

Although cross-border e-commerce is still very hot, volume is growing, platforms, sellers, third-party service providers are also constantly chasing industry opportunities, but in the past 2018, cross-border e-commerce is not so good.

From the macro environment: complex

Increase in entrants and intensify competition: With the increase of participants, cross-border e-commerce is experiencing a change from “Blue Sea” to “Red Sea”. Traditional foreign trade has transformed into cross-border e-commerce, and a large number of domestic Taobao and Tianmao sellers have entered the cross-border e-commerce industry. Sellers in India and other Southeast Asian countries have sprung up, and competition has intensified dramatically. The result is that the flow and resources are inclined to big sellers and high-quality sellers, which also means the crisis of small and medium sellers.

Unpredictable international trade environment : the outbreak of the Sino-US trade war also makes the world trade situation become ups and downs in a sudden, which is full of uncertainty.  Although it does not have a great impact on cross-border e-commerce, sellers are more or less feeling a little down. The cruel thing is that the United States announced the withdrawal of the Universal Postal Union process, which directly results in higher postage charges and higher operating costs of cross-border e-commerce.

As can be seen from the earnings of cross-border e-commerce head sellers, 2018 may be profitable, but all the money is in the warehouse. A large inventory backlog occupies a large amount of fund liquidity.

In 2019, cross-border e-commerce vendors will still face many challenges.  Externally, we should expand new markets and increase revenue. Competition between Europe and the United States and other markets has become more intense. It is better to open up a new market than to compete in the US and Europe. In fact, last year Amazon announced the opening of India and Middle East is a new signal to Chinese sellers.

Internally, refined and branded operation. Fine operation will become the mainstream, abandoning the rough operation in the past, such as following the trend to selling goods, to achieve intensive farming, it is worth mentioning that the use of big data will become a sharp tool for sellers to improve the fine operation. At the same time, the deterioration of seller’s price competitive advantage, the reduction of operation and logistics costs, the improvement of operation efficiency, service level, and the realization of healthy capital flow will become the direction of seller’s attention. A certain scale of sellers can timely branding.

But we’re still moving forward. ChinaDivision had just finished its annual meeting over the last week, In review of last year, CNstorm Group, the holding company records a new sales volume, way more than any years in the past.

Let’s hope for the best, but don’t forget, prepare for the worst. New journey, we are ready!

 

CIIE Logistics Channels Boosts Cross-border E-commerce Benefits

At a press conference on “Promoting Consumption Upgrading Through E-Commerce Import” held during the first CIIE (China International Import Expo), Qian FangLi, director of the department of e-commerce and informatization of the ministry of commerce, said: ” we will adhere to the principle of encouraging innovation, inclusiveness and prudence, optimize and improve regulatory measures in accordance with the overall approach of ‘temporary supervision of personal belongings’, while ensuring the overall stability of regulatory arrangements.”  

On the whole, this is a good news for both import and export cross-border Ecommerce. Statistics from the UN Conference on Trade and Development shows that the proportion of China’s global trade in services rose from 11.42% to 15.59% from 2005 to 2016.

After joining the World Trade Organization, China’s services trade has grew rapidly. The total volume of imports and exports of the country’s services trade increased from $67.4 billion to about $696 billion from 2001 to 2017, achieving more than 10 times of growth.

“If Chinese companies want to further participate in the international division of labor and cooperation and enhance their status in the global value chain, then developing services is indispensable,” said Zhao Liqiang, global partner of Bain & Company.

We believes that the advantages of Chinese products in terms of quality and scale have made them very popular all over the world, especially in Southeast Asia. With the support of the Belt and Road Initiative, consumers will also further help Chinese sellers to explore overseas markets more efficiently.

Want more business opportunities? Now visit Chinadivision.com, discuss with our professional order fulfillment specialist about your specific projects and we’ll treat you as members of our family, with reliable cost-effective service and support.