Propelled by new business forms like overseas warehouses, technological advances and growing demand for stay-at-home products, growth in cross-border e-commerce in China will continue throughout the year despite challenges, according to experts and business leaders, who said that strong industrial and supply chain resilience will continue to provide a solid base for the sector to grow.

The latest general administration of customs data showed China’s cross-border e-commerce imports and exports totalled 1.98 trillion yuan ($311.9 billion) in 2021, expanding by 15 per cent year on year. Exports totalled 1.44 trillion yuan, up 24.5 per cent on a yearly basis, according to reports in official Chinese media.

DHgate, a leading Chinese B2B cross-border e-commerce market platform, has seen a continuous surge of Chinese products in international markets. The top five countries importing Chinese goods from DHgate are the United States, the United Kingdom, Australia, Canada and France. There is also rising demand from emerging markets such as the Seychelles, Zimbabwe and Senegal, the company said.

Propelled by new business forms, technological advances and growing demand for stay-at-home products, growth in cross-border e-commerce in China will continue this year despite challenges, say experts and business leaders. Strong industrial and supply chain resilience will continue to provide a solid base for the sector to grow, they feel.

Diane Wang, founder, chairperson and chief executive officer of DHgate, said there will be stable growth in cross-border e-commerce trade for personal protective equipment, stay-at-home economy products such as home video and audio systems, monitors and small kitchen appliances.

There will also be large demand for China’s electric bicycles, scooters and related accessories such as tires since overseas consumers are switching from public transportation to private transportation in countries like Italy, France and the United Kingdom, she said.

JD Global Sales, Chinese internet giant JD’s cross-border e-commerce platform, has also seen a strong presence in global markets given China’s swift growth in the sector.

JD has now been operating roughly 80 bonded and overseas warehouses globally. It can provide an integrated full-chain solution to meet sellers’ diverse demands, such as transportation by air, rail, sea and truck between China and the US, as well as the European, Middle East and Asia-Pacific regions.

JD’s worldwide supply chain network has reached more than 220 countries and regions. It is building a robust and efficient cross-border infrastructure for global sellers and shoppers which feature two-way, 48-hour delivery pathways.

Logistics, however, will be the largest obstacle for cross-border e-commerce as the global supply chain has suffered due to the pandemic, resulting in product shortages, lack of efficiency and disruption, according to Diane.

Micro, small and medium enterprises, which form the majority of sellers on DHgate, also need to update their digital mindset and capacity to remain resilient and seek better growth. There is still not enough training available for suppliers, nor enough funding to support their digitalization efforts, she added.

Fibre2Fashion News Desk (DS)