The Strength Of China'S Manufacturing Industry Chain Supports The Rapid Growth Of Cross-Border E-Commerce

On October 8, the guests walked into the venue of 2024 Global Cross border E-commerce Annual Conference (Zhuhai Hengqin). Photographed by Liang Xu, a reporter from Xinhua News Agency

According to the Ministry of Commerce of China, in the first half of this year, about 9 million small parcels were sent to and from China and other countries every day. From order placement, production to receipt, high-quality Chinese made products are delivered to global consumers more quickly, and more and more world goods are entering the Chinese market more smoothly. All this is closely related to cross-border e-commerce, a new way of foreign trade.

At the 2024 Global Cross border E-Commerce Annual Conference (Zhuhai Hengqin) held from October 8 to 9, insiders believed that the rapid development of China's cross-border e-commerce in recent years not only benefited from the development of digital technology, but also represented the stronger strength of China's manufacturing industry chain under the new technology model.

"After a factory with more than 10 years of garment OEM experience in Zhuhai, Guangdong joined Duoduo Cross border, it achieved an average daily sales of 6000 orders in one year, and produced cross-border e-commerce products accounting for 85% of the company's total production capacity." Fan Jiezhen, co-founder of Pinduoduo, said that as a Chinese cross-border e-commerce platform, Duoduo Cross border went deep into more than 100 domestic manufacturing industry belts in Guangdong, Zhejiang and other provinces, We have pushed Made in China into more than 70 countries and regions around the world.

As a new business form and model of international trade, cross-border e-commerce is profoundly influencing the global trade pattern with unprecedented speed and scale. In the first half of this year, China's cross-border e-commerce import and export reached 1.22 trillion yuan, up 10.5% year on year, significantly higher than the growth rate of foreign trade in the same period. Cross border e-commerce has become one of the three major trade modes in China besides general trade and processing trade.

On October 9, cross-border e-commerce enterprises presented at the 2024 Global Cross border E-commerce Annual Conference (Zhuhai Hengqin). Photographed by Liang Xu, a reporter from Xinhua News Agency

The cross-border e-commerce in Guangdong, a major foreign trade province, has developed more rapidly. In 2023, Guangdong's cross-border e-commerce import and export will reach 843.3 billion yuan, 74.6 times that of 2015, ranking first in China for many consecutive years. In the first half of this year, Guangdong's cross-border e-commerce import and export reached 427.34 billion yuan, accounting for more than 1/3 of the country's cross-border e-commerce import and export.

According to insiders, the development of cross-border e-commerce benefits from the rapid development of China's digital economy. Xu Qingqi, president of Malaysia's New Asia Strategic Research Center, believes that China has obvious advantages in the digital economy. In 2023, China's online retail sales will reach 15.4 trillion yuan, becoming the world's largest online retail market for 11 consecutive years. China is also the second largest digital economy in the world, accounting for 43% of China's GDP.

The rapid development of cross-border e-commerce is also due to the solid industrial chain supply chain foundation made in China.

Guangzhou Panyu is an important cross-border e-commerce cluster, where there are more than 1000 e-commerce enterprises, and 3 of China's four largest cross-border e-commerce platforms (enterprises) are located here. The biggest attraction is the local developed clothing industry.

Huang Biao, secretary of Panyu District Party Committee, said that there are more than 34000 garment enterprises in Panyu, of which more than 7000 are garment manufacturing enterprises. After years of cultivation, Panyu has a relatively complete industrial chain from upstream fiber processing to R&D, design and garment manufacturing. It is an important textile and garment industry cluster in China and a source factory cluster of many cross-border e-commerce platforms.

"Small order quick return" is an important magic weapon for the current textile and clothing products to sell through cross-border e-commerce. This model abandons the traditional practice of heavy capital and high inventory in the clothing industry, reduces the purchase batch, shortens the production cycle, and quickly applies the model to test the market response. Once the model is broken, it will immediately increase production and quickly distribute goods, and it will only take a few days from design to production at the fastest speed.

Industry insiders believe that the acceleration of the whole product cycle and the small-scale production of orders have high requirements on the flexible production capacity of enterprises. In practice, many cross-border e-commerce enterprises have gradually formed a more perfect cross-border e-commerce ecological chain by providing cooperative factories with flexible transformation technologies and equipment and other support.

In the opinion of Liu Hang, the director of Duoduo cross-border business, Guangdong's strong manufacturing capacity, relatively complete supply chain system and developed logistics system support the rapid development of cross-border e-commerce. According to the Guangdong Provincial Department of Commerce, Guangdong International, Hong Kong, Macao and Taiwan express business accounts for more than half of the country's total, and handles more than 120000 international parcels per hour.

Thousands of years ago, Chinese silk went to the world along the Maritime Silk Road from the coast of the South China Sea; In the past decade, Made in China has flown from the Guangdong Hong Kong Macao Greater Bay Area to the world through cross-border e-commerce.

Chen Yong, Secretary of Zhuhai Municipal Party Committee of Guangdong Province, said that Zhuhai will focus on the cultivation and development of new business forms such as cross-border e-commerce, promote foreign trade import and export with cross-border logistics, and strive to form more open achievements to help Guangdong's high-level opening up construction. (Xinhua News Agency reporter Wu Tao, Ding Le)

(Source: Xinhuanet)