China’s cross-border e-commerce is forecast to see turnover top 1.3 trillion U.S. dollars in 2018, according to a report released by the China E-Commerce Association. The future of Chinese economy? Second and third tier cities
The report, released on Sunday at the ongoing 20th China International Fair for Investment and Trade (CIFIT), held in Xiamen, east China’s Fujian Province, said that the top 10 import sources of China’s cross-border e-commerce trade in 2017 were Japan, the United States, the Republic of Korea, Australia, Germany, New Zealand, the Netherlands, France, Britain, and China’s Hong Kong Special Administrative Region.
The International Investment Forum, as the window to issue China’s two-way investment policies, the channel to release the international investment authoritative information and also the platform for domestic and foreign investors to interact with each other, has been successfully held for 16 consecutive sessions since 2000.
It has been developed into an important platform to exchange the investment information, release the authoritative policies and coordinate the investment mechanism for various countries, investment institutions and enterprises in the world and a world top forum in the global investment field
According to data, cross-border e-commerce is most active in south China’s Guangdong Province, followed by Beijing, east China’s Zhejiang and Shandong provinces and central China’s Henan Province for exports via e-commerce. But lower-tier markets are rinsing too.
Chinese government supports cross-border e-commerce with policies and infrastructure building. According to delegates who held the meeting, trade protectionism in forms of tariff barriers and anti-monopoly investigations has posed negative influence on the development of cross-border e-commerce.
On July 13 the State Council officially decided to set up a batch of cross-border e-commerce comprehensive pilot zone in 22 cities. It was pointed out that accelerating the growth of international e-commerce is an important measure to increase imports and exports, and better meet the needs of consumers, thus boosting both domestic and out-of-China development.
Since 2015 the State Council approved the establishment of free trade zones for e-commerce in Hangzhou and other 13 zone: the result has been an impressive growth of cross-border sales growth for two consecutive years.
Why held CIFIT in Xiamen? Second and third tier cities are the new fondation of Chinese economy. In the not-so-distant future, more than half of the rich Chinese will be in we never heard cities, that’s why is important to understand which are the raising markets.
Having a scale of almost continental size, it’s difficult to talk about China without pointing out that the “real” China is much richer and heterogeneous than the Western traveler thinks. Government statistics have always been at the forefront of telling the story of China’s urban reality. It’s estimated that by 2022 there will be a 56% increase in consumption in urban areas and the middle class will constitute about 54% of the Chinese resident population in the cities.
But what is changing within the country? Historically, the central government has separated large cities into three categories according to GDP: first, second and third tier. Cities like Beijing, Shanghai or Hangzhou are first-tier metropolises.
But nowadays, thanks to the new state incentives, the megacities of the other two categories are pushing the structural economic revolution. In which sectors does the Chinese consumer resident in second-tier and third-tier cities spend? Estimates are clear: clothing, food delivery, and education
In second-tier cities such as Chongqing and Suzhou, there’s a high consumption of goods and services, de facto representing the new engine of development for the Chinese economy. But the panorama we are facing is complex. The literature also stresses that second-tier cities represent the future of the Chinese market and at the same time a hope for the many foreign entrepreneurs who intend to break into virgin territory.
China has now become an important center of attraction for young foreign graduates and researchers who are interested in trying out a new experience, to see their skill set recognized, and to live in dynamic and developing environments. Second-tier cities are a great opportunity for professional and personal growth. For this reason cities like Xiamen in Fuijian Province, Chengdu in Sichuan Province, or the enchanting Shenyang in Liaoning are attractive options.
As first Chinese media platform specialized in cross-border e-commerce, Cifnews雨果网 also attended the appointment in Xiamen. Fujian second-largest city is also Cifnews雨果网 head quarter and one of the new issued Chinese’ Free Trade Zone
Cifnews雨果网 helps brands, companies, and service providers get the latest news and insights from the industry’s top experts, translating them into skills that can be directly applied in the e-commerce, digital platforms, logistics, and online payment markets.
Based in Xiamen Free Trade Zone area, Cifnews is the industry’s most recognized editorial network and event organizer in China, with 6M+ monthly views of its online platforms, and over 45K event participants in 2017 alone.
The same year Cifnews雨果网 launched its International department with offices in Padova, Italy, and Los Angeles, CA. Cifnews雨果网 core activities are publishing, online and offline exhibitions, and training modules. Thus, Cifnews unique CCEE event format is dedicated to the professionals working on imports and exports to and from China.
CCEE was established in 2017 to create a link between manufacturing and digital distribution at the global level. It registered over 45 thousand attendees in its first year, with three events in China. How Chinese e-commerce market is growing? How is possible to better understand chinese markets?
CCEE is aimed at smoothing the transition from traditional retail to “New Retail”, bridging the gap between China and global markets – and the other way around. Its events are dedicated to factories, buyers, e-commerce operators and third-party service providers from all over the world, covering the whole supply chain.
MORE ON THIS TOPIC