E-commerce: China Promotes Market Access


After the decision to put in act a new law for cross-border e-commerce, China moves to cut business costs and promote market access


Recently Beijing seems to release an import expansion list into its cross-border e-commerce retail. According to the State Council executive meeting on November 21, the government is working on including over 1,300 tax items in order to cover more Chinese consumer’s demands.

Thanks to cross-border e-commerce in China, Chinese products entered directly into foreign homes. What was only found in the Dragon or vice versa is now available to anyone changing the way we perceive commerce and purchasing.


new law for cross-border e-commerce - smatphone purchase - cifnews

©123rf. In China, buying something from the comfort of your home with a click is now normal. Everything is paid through WeChat Pay or Alipay.


Cross-border e-commerce is becoming every day more important worldwide, especially in the PRC where it reached 60 million people in 2017. The Chinese market abroad has thus changed drastically in the last decade. While in the past years it was very difficult to trade with the Middle Kingdom, in recent years, thanks to the advent of the Internet, we witness a continuous and accelerated growth of online trade.

In addition, Chinese products’ characteristics improved compared to the past increasing customers’ confidence abroad. The country’s products are now purchased not only because they are very convenient, but also because the quality is great.


But now PRC State Council is ready to promote market acces and cut business costs. A good news for foreing brands


According to State Council new directive – Circular of the State Council General Office on Focusing on the Concerns of Enterprises in Further Promoting the Implementation of Policies for Optimising the Business Environment , 国务院办公厅关于聚焦企业关切进一步推动优化营商环境政策落实的通知 – small businesses will have easier access to finance and pay less tax. These reduced business costs, combined with greater intellectual property protection and easier market access, have been designed to nurture business creativity.

More specifically, the directive outlines a number of new policy initiatives, including “a reduction of market access restrictions on capital from a variety of sources and an alleviation of the problems of financing difficulties and high costs for micro, small and medium-sized enterprises”.


©Photohunter. Xian. Cities such as Chengdu, Xian or Chongqing will drive PRC consumptions in the future.


Plus, Beijing decided further “reductions to the corporate tax burden, the accelerated introduction of enhanced intellectual property protection and the nurturing of a positive innovation and entrepreneurship environment”.

According to the document, by the end of March 2019 “restrictions on the use of foreign capital in all sectors not featured on the Negative List will be completely eliminated, unifying the criteria for the deployment of overseas and domestic investment”.

In addition, a system of foreign investment management “with online record-filing playing a principal role, will be implemented. Designated foreign enterprises will then be monitored and inspected in order to ensure they are enjoying equal standing when it comes to government procurement, funding subsidies, qualification accreditations and other criteria as may be deemed relevant”.


Nowadays, many foreign brands choose cross-border e-commerce to sell in China not only because it is the easiest and cheapest way to market with this country but also because it offers many fruitful opportunities.


According to statistics, the transnational trade in China is expected to grow 43% in 2018. It is estimated that Chinese who purchase foreign products, will spend about $ 109 billion. In particular, the Chinese Minister of Commerce forecasts an annual growth of 30% of the electronic market across the border, a market that is expected to double by 2020.

Therefore, the creation of free trade areas as well as customs clearance and the improvement of logistics with the construction of warehouses will be key operations that will follow the last Council of State’s meeting.

The goal is to further simplify the cross-border sales process in order to increase the import of foreign competitive products on the one hand and to establish an effective global marketing network on the other.


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