Cross-border e-commerce boosts trade and SMES

A Yemeni trader selects tea pots at the Yiwu International Trade Market in Yiwu city of East China's Zhejiang province.[Photo/Xinhua]

Chinese online retailers are speeding up efforts to expand their presence in overseas markets amid a broader drive to diversify revenue sources and hedge against the negative effects of the COVID-19 pandemic, industry experts said.

They added cross-border e-commerce has played an increasingly important role in stabilizing China's foreign trade and accelerating the digitalization push by small and medium-sized enterprises.

Last month, the Shanghai-based company launched its cross-border e-commerce platform named Temu targeting the US market, the company's first overseas destination.

The products sold on Temu cover a wide range of categories, including apparel, consumer electronics, jewelry, shoes, bags, cosmetics, baby products and pet supplies. The platform will focus on US consumers who are inclined to buy cost-effective goods. For example, most offerings are daily necessities priced below $10.

"Chinese e-commerce platforms are accelerating their layout in overseas markets so as to seek new sources of revenue as the growth in the domestic e-commerce sector is slowing," said Zhang Zhouping, a senior analyst of business-to-business and cross-border activities at the Internet Economy Institute, a domestic consultancy.

As a new channel for foreign trade, cross-border e-commerce has emerged as a key pathway to mitigate the impact of the pandemic on foreign trade. It is also playing a crucial part in encouraging traditional foreign trade enterprises to build new brands, Zhang said.

China will further introduce policies and measures to support the development of cross-border e-commerce and overseas warehouses, according to a notice issued by the Ministry of Commerce in September.

"Cross-border e-commerce platforms have become an efficient and convenient way for traditional manufacturing enterprises to expand their overseas footprint. They can help micro, small and medium-sized enterprises open up new markets," said Lyu Gang, a researcher from the Development Research Center of the State Council.

Source:https://www.chinadaily.com.cn/a/202210/12/WS6346172fa310fd2b29e7bfc0.html

By FAN FEIFEI | China Daily