On April 25, the State Council issued a reply on agreeing to set up cross-border e-commerce comprehensive pilot zones in 15 cities (regions) including Hainan Island and Qinhuangdao (the "Reply").
According to the reply, it is agreed to set up cross-border e-commerce comprehensive pilot zones on the whole island of Hainan and 15 cities (regions) including Qinhuangdao City, Baoding City, Erenhot City, etc., with the names of China (city or region name) Cross-border E-commerce Comprehensive Pilot Zone, and the specific implementation plans shall be issued by the local provincial people's governments. At the same time, the cross-border e-commerce comprehensive pilot zones established in Haikou, Sanya and Alashankou will be revoked.
The "gold content" of cross-border e-commerce is still rising.
Last year, China's cross-border e-commerce import and export was 2.63 trillion yuan
A new era of domestic products going overseas: a gorgeous turn from "Made in China" to "Chinese Brand".
At present, the development of China's cross-border e-commerce has entered a golden period, showing the distinctive characteristics of "both quantity and quality". From the perspective of policy layout, 165 cross-border e-commerce comprehensive pilot zones across the country have achieved full coverage at the provincial level, providing a solid institutional guarantee for the development of the industry. In 2024, the industry delivered a brilliant report card: the scale of imports and exports exceeded 2.63 trillion yuan, a year-on-year increase of 10.8%, a net increase of 1 trillion yuan compared with 2020, showing strong growth resilience.
It is worth noting that cross-border e-commerce is transforming from simple channel innovation to upgrading the whole industry chain. In terms of "selling globally", high-tech products have become a new growth point: the export of electric vehicles increased by 13.1%, 3D printers increased by 32.8%, and industrial robots achieved rapid growth of 45.2%. What's even more exciting is that the proportion of independent brand exports has increased to 21.8%, and domestic trendy brands are setting off a new round of "Chinese style" in the global market.
According to data from the General Administration of Customs, China's total foreign trade will reach 43.85 trillion yuan in 2024, a year-on-year increase of 5%, and continue to break through the two integer thresholds of 42 trillion yuan and 43 trillion yuan. Deputy Director Wang Lingjun pointed out that this is not only an expansion of scale, but also a leap in quality - the proportion of high-tech products continues to increase, and the new trade format is booming, marking that China's foreign trade structure is undergoing profound changes.
Investment Implications:
Focus on the "new three" (electric vehicles, 3D printing, robots) export industry chain; Excavate domestic enterprises with brand premium ability; Lay out the cross-border e-commerce service ecology (payment, logistics, digital services).
Set up a comprehensive pilot zone for cross-border e-commerce on the whole island of Hainan
The latest reply of the State Council has drawn a new path for the development of cross-border e-commerce, emphasizing two key points: one is to replicate and promote mature experience, and the other is to empower the transformation of traditional industries through digitalization. This marks that cross-border e-commerce has been upgraded from a simple new form of trade to a core engine to promote the high-quality development of foreign trade.
A quick overview of industry fundamentals:
• Scale breakthrough: import and export will reach 2.63 trillion yuan (+10.8%)
in 2024 • Ecological improvement: 165 comprehensive pilot zones will cultivate more than 120,000 enterprises
• Mature system: The framework of "six systems and two platforms" will be promoted nationwide
As the first island-wide free trade port to close customs operations, Hainan has three advantages:
1) policy superposition: cross-border e-commerce policy and the free trade port's "zero tariff + low tax rate" form a multiplier effect
2) spatial breakthrough: upgrade from a pilot park to a global test site
3) institutional innovation: explore a new paradigm for cross-border e-commerce development for the whole country
A researcher from the Ministry of Commerce pointed out: "The development of cross-border e-commerce needs to 'cross the river by feeling the stones', and the pilot project on Hainan Island is the embodiment of this spirit of exploration." Its value lies not only in policy breakthroughs, but also in accumulating replicable institutional experience for the whole country. "
With the promotion of the pilot project in Hainan, cross-border e-commerce will usher in the two-wheel drive of "system dividend + market dividend", and it is recommended that investors pay close attention to the rhythm of policy implementation and the trend of enterprise layout. Focus on three major directions:
1) Hainan local cross-border service providers (logistics/payment/warehousing)
2) digital trade platforms
for the Southeast Asian market 3) Potential enterprises transforming traditional manufacturing into cross-border e-commerce
|B2B innovation and overseas warehouses share into bright spots
The "Reply" pointed out that in accordance with the principles of encouraging innovation, inclusiveness and prudence, adhere to goal-oriented and problem-oriented, and strengthen coordination and cooperation between various departments. In particular, we will explore and innovate in the relevant aspects of the cross-border e-commerce business-to-business (B2B) model, such as technical standards, business processes, regulatory models and information construction. The government will also study and introduce more support measures to create a good development environment for the comprehensive pilot zone and promote and regulate the growth of the cross-border e-commerce industry.
In addition, the reply also mentions that it is necessary to further improve the statistical system of cross-border e-commerce, and implement support policies such as exemption of value-added tax and consumption tax for cross-border e-commerce retail export goods in the comprehensive pilot zone according to regulations. Enterprises can choose the method of enterprise income tax verification and collection, and the relevant policies for cross-border e-commerce retail imports will be automatically applied to the cities where the comprehensive pilot zones meet the regulatory requirements. At the same time, the government also vigorously supports enterprises to jointly build and share overseas warehouses.
The "Opinions on Expanding Cross-border E-commerce Exports and Promoting the Construction of Overseas Warehouses" issued last year clearly pointed out that cross-border e-commerce is a new business model driven by scientific and technological innovation, and through the application of new technologies and the adaptation of new trends, it can reduce intermediate links and reach consumers directly, so as to optimize the foreign trade structure, stabilize the scale, and create new advantages in international economic cooperation. This has become an important force in the development of China's foreign trade, and it is also an important trend in the development of international trade.
Why do we need to emphasize supporting enterprises to jointly build and share overseas warehouses?
Experts Zhou Mi said that if each foreign trade enterprise builds its own overseas warehouse separately, it will cause a waste of resources. Bai Ming believes that in recent years, Chinese enterprises have established many overseas warehouses abroad, and supporting co-construction and sharing can better give full play to the scale advantages of these overseas warehouses and maximize efficiency. This is also an important embodiment of institutional innovation.
The new policy will accelerate the transformation of cross-border e-commerce from "savage growth" to "standardized development", and the industry concentration is expected to increase, and the leading effect will be highlighted.
