China Takes Next Step In eCommerce Globalization

Chinese officials are revamping their support for cross-border eCommerce as they look to reverse an economic slowdown and find new ways to profit from somewhere other than its traditional manufacturing sector. Earlier this month the People’s Bank of China announced plans to expand cross-border finance programs to strengthen the yuan following additional plans revealed in March for the China International Payment System, also focused on promoting the yuan overseas.

On Monday (June 22), reports revealed that China has made yet another step in its international economic expansion. The State Council reportedly released new guidelines for eCommerce businesses to follow in their cross-border ventures as the government aims to strengthen the sector.

Reports said the new rules educate eCommerce players on the processes for customs and taxes. According to reports, businesses have been given guidance on the export and import process in an effort to streamline the declaration and product examination procedure. The State Council has also reportedly introduced lower export taxes to encourage overseas procurement of Chinese goods and services.

Following the release of the new guidelines, reports said the nation’s State Administration of Foreign Exchange applauded the early success of China’s pilot foreign exchange payments program, first launched in 2013, which promoted cross-border eCommerce ventures in several major cities. The nation reportedly saw $3.32 billion in cross-border trade following that 2013 launch.

As the global market shies away on Chinese manufacturing, the nation has been forced to seek new ways to remain competitive. Online commerce conglomerates like Alibaba have been instrumental in strengthening China’s standing in the eCommerce industry and a major contributor to the expected $1.1 trillion in cross-border eCommerce trade experts say China will see in 2016.

Despite minor slips in B2B eCommerce figures in the first quarter of this year, the industry has played a vital role in the rise of Chinese eCommerce. According to statistics published in March, B2B online sales are the largest contributor to Chinese eCommerce volumes, making up 70 percent of such transactions in 2014.