context: Against economic and trade downturn, Chinese CBEC (cross-border e-commerce) growth has persevered, expanding by 9.6 percent in Q1 2024 and 15.6 percent in 2023. The Ministry of Commerce recently published opinions to boost CBEC exports and the development of overseas warehouses. Given its rising importance in driving PRC trade, more support for CBEC can be expected.
Following an article in 21st Century Business Herald, Guotai Junan research suggest the latest MofCOM (Ministry of Commerce) Opinions are in line with previous policy developments and that more policy support for CBEC (cross-border e-commerce) and overseas warehouses will be coming.
Minsheng Securities analysts argue that whether the Opinions will have concrete material benefits for enterprises still depends on the content of upcoming follow-up and supplementary measures. They expect support measures to be introduced in financial support and talent training. They also state that more clear support and encouragement should be provided to CBEC and overseas warehouses.
Bai Ming 白明 MofCOM Research Institute Degree Committee member notes emerging trends and potential impact
- CBEC and overseas warehousing services are developing rapidly as a new mode of international trade with great market potential
- the Opinions push for the integration and collaboration of CBEC and overseas warehouses, which can help to
- enhance trade resilience
- reduce logistics costs
- improve the efficiency of the supply chains
- bolster Chinese firms' international competitiveness
- upgrade the overall quality of trade
Bai reiterates that CBEC helps bring more opportunities for Chinese firms and industrial development as it can consolidate a lot of market demand that is otherwise not served effectively in traditional trade formats.