Shou Xiaoli:

Last two questions.

CNBC:

Are there any special opportunities and prospects for cross-border e-commerce? Thank you.

Sheng Qiuping:

Thank you for your question. In recent years, with the advancement of internet technologies and the development of the digital economy, major changes have taken place in international trade, and cross-border e-commerce has developed rapidly from scratch. Cross-border e-commerce breaks through the limitations of time and space, reduces the intermediate links of trade, solves the problem of information asymmetry between the supply and demand sides, and provides new development opportunities for more countries and more small and medium-sized enterprises, reflecting the inclusive and universal development of trade. The COVID-19 pandemic has led to changes in consumer behavior. With a surge in online shopping demand from consumers in various countries, cross-border e-commerce has gained momentum. In this context, China's cross-border e-commerce continues to grow rapidly. Since 2015, the State Council has approved the establishment of 132 comprehensive pilot zones for cross-border e-commerce in six batches, covering 30 provinces, autonomous regions, and municipalities across the country. In 2018, China innovatively introduced cross-border e-commerce retail import supervision policies and gradually expanded the pilot scope to 31 provinces, autonomous regions, and municipalities across the country. Together with various departments and localities, the MOFCOM has replicated and promoted nearly 70 mature experiences and innovative practices across the country. We also actively participate in international cooperation. We have put forward China's solutions on multilateral occasions such as the meetings of the WTO, G20, APEC, and the WCO, and signed e-commerce cooperation memos with 23 countries. At present, many countries and regions have their own local cross-border e-commerce platforms. Relying on the advantages of the manufacturing industry and the market, local Chinese enterprises have developed rapidly, accumulating a lot of practical experiences. A number of world-leading cross-border e-commerce platforms have emerged. According to customs statistics, China's import and export through cross-border e-commerce grew nearly elevenfold in 5 years. The volume reached 1.92 trillion yuan in 2021, up 18.6% year on year. Cross-border e-commerce has greatly lowered the access threshold for international trade, enabling many small and micro entities that once didn't know how to do it, could not make it, or were not able to do it become operators of the new type of trade. So far, more than 30,000 companies have registered on the online comprehensive service platforms of cross-border e-commerce comprehensive pilot zones. At the same time, cross-border e-commerce companies have better met the personalized and customized needs of overseas consumers by creating a flexible supply chain that brings together factors and responds quickly.

China's cross-border e-commerce covers not only global sales but also purchases, enriching the supply for the domestic market, better meeting the people's needs for a better life, and injecting new momentum for the global trade investment. In recent years, many ambassadors in China have proactively promoted their own country's products through livestreaming platforms. Special local products such as Pakistan's pink salt and Bulgaria's rose water have become internet sensations and widely accepted by the consumers. Some quality brands have since entered the Chinese market via e-commerce and settled down, bracing their new development opportunities. 

We hope foreign countries will step up exchanges and mutual learning to play their part in the healthy development of the cross-border e-commerce sector and the recovery of the global economy in the post-COVID era. We also hope that governments of other countries and business organizations can actively participate in international cooperation and continue to improve the business environment so as to guide and serve cross-border e-commerce enterprises in a better way. Thank you.

Wang Lingjun:

I would like to add several points from the customs perspective. Cross-border e-commerce makes an important part of China's emerging trade forms. The General Administration of Customs has actively performed its functions and always adhered to the "inclusive, prudent, innovative and coordinative" regulatory concept to promote the new business forms to grow in an orderly manner.

First, we have innovatively improved our regulatory modes. As the cross-border e-commerce businesses will meet different clearance procedures, we have rolled out targeted and customized regulatory modes, such as "online shopping bonded imports," "direct purchase imports," "general exports," "special region exports," "B2B direct exports," and "overseas warehouse of the cross-border e-commerce exports," among others.

Second, we have smoothed the cross-border e-commerce trade channels. In particular, we have worked through the problems in returning cross-border retail goods, reassuring domestic consumers making overseas purchases.

Third, we have promoted the international regulatory cooperation of the Customs in regard to cross-border e-commerce. We hosted the Global Cross-Border E-Commerce Conference in Beijing together with the WCO, adopted the Beijing Declaration, and formulated the WCO Framework of Standards on Cross-Border E-Commerce, promoting the healthy development of the cross-border e-commerce worldwide.

Thank you.