e-commerce should use AI to match supply-demand and serve the real economy

context: Ministry of Commerce guidance seeks to lift high-quality e-commerce. It repositions e-commerce as infrastructure to back services trade and the real economy. Amid rising external headwinds weighing on goods trade, Beijing leans on CBEC (cross-border e-commerce) growth. Policymakers see CBEC not only as a way to lift exports and reach new markets, but also as a means to drive growth in digital trade, services and cross‑border payment links. CBEC growth also drives tech innovation and AI rollout.

A Yicai editorial unpacks a Ministry of Commerce guidance to promote high-quality e-commerce development

  • aims to build an integrated e-commerce ecosystem integrating supply chains, digital infrastructure and regulatory frameworks
  • role of e-commerce in the PRC economy
    • key channel supporting transition from investment- and export-led growth to consumption-driven growth
    • supports supply chain digitalisation and improves responsiveness to domestic and global demand
    • e-commerce has been embedded in the real economy
      • taking on the role of enabling selection, trusted ranking and matching between supply and demand
    • the PRC has remained the world’s largest online retail market for 13 consecutive years
  • e-commerce increasingly built on trust infrastructure rather than pure transaction volume
    • mechanisms include livestreaming, direct sourcing and demand-driven customisation
      • enables traceability across supply chains and transaction processes
      • reduces cost of visibility for quality products and improves fulfilment of personalised demand 
    • reflects transformation in information flows, transaction structures and connectivity
  • legacy model focused on maximising sales through traffic acquisition and algorithm-driven promotion 
    • platforms and merchants prioritised volume expansion over efficiency or precision
    • new consumption patterns, stronger digital property awareness and AI adoption are challenging this model
      • increasing pressure for innovation and structural adjustment
  • despite rapid changes, the core objective of e-commerce remains about helping supply and demand complete selection, trusted ranking and transaction matching more quickly, safely and at lower cost
  • e-commerce is not merely a goods and services sales channel
    • AI is driving a transition away from traffic and volume driven models
    • focus shifting toward
      • redefining supply-demand relationships
      • balancing stakeholder interests
      • building low-cost connection mechanisms
      • strengthening trust and security in digital transactions 
  • as cross-border e-commerce expands rapidly, rules, regulations, governance and standards are increasingly spilling beyond national boundaries
    • giving rise to new forms of institutional competition
    • only by adhering to pro-development regulatory principles can e-commerce expand global market access
      • only by better serving the real economy can it withstand the impact of the new tech revolution 
  • advancing high-quality e-commerce requires moving beyond path dependence on using new tech to reinforce legacy models while minimising adjustment costs
    • instead, upholding a competitive market order in which innovation is oriented toward better serving the real economy 
    • fair competition is the fundamental force for positive development and the ‘lowest-cost’ trust mechanism