2014ChinaCross-borderE-commerceReport(BriefEdition)•Inanarrowsense,cross-bordere-commerceisalmostequaltocross-borderretailing,inwhichtransactionpartiesindifferentcountriesreachagreementsandsettleaccountsthroughtheInternetanddeliver/receivethegoodsviacross-borderlogistics.•Inabroadsense,cross-bordere-commerceequalselectronicforeigntrade.It’sakindofinternationalbusiness,inwhichtheproductdisplay,negotiationandtransactionaredoneviatheInternetandgoodsaredeliveredthroughcross-borderlogistics.Thecross-bordere-commercementionedherereferstothelatterone,whichonlycoverscross-bordere-commercetransaction,excludingcross-bordere-commerceservices.Itconsistsofthecross-borderonlineB2BdealsaswellastheB2BdealsinO2Opattern.Cross-borderE-commerceCross-borderE-commerceTransaction(cross-bordere-commerceinbroadsenseadoptedbythisreport)cross-bordere-commerce=cross-borderB2Ce-commerce+cross-borderB2Be-commerceCross-borderE-commerceServices(excluded)Cross-borderRetailing/Cross-borderB2Ce-commerce(cross-bordere-commerceinnarrowsense,cross-bordere-commerce)cross-borderB2Be-commerce(O2Odeals+onlinedeals)44ChinaForeignTradeConditionsin2013DomesticandInternationalFactorsSlowedtheGrowthSource:NationalBureauofStatisticsofChina.ThetotalforeigntradevolumeofChinaamountedto25.8trillionYuanin2013,andthegrowthratesofimportandexportbothattainedcertainriseversus2012.However,duetotheslowpaceofworldeconomicrecovery,climbingdomesticlaborcosts,appreciationoftheRMBandworseningtradefriction,thegrowthrateofChina’stotalforeigntradevolumewasalwaysbelow10%inrecenttwoyears.iResearchforecaststhatsuchsituationwillremainin2014withlimitedriseinthetotalvolume.6.37.89.410.08.210.712.312.913.75.46.37.38.06.99.511.311.412.123.9%20.6%7.3%-18.3%30.5%15.2%4.5%6.5%16.8%15.7%8.5%-13.7%38.0%19.5%1.0%5.9%0510152025200520062007200820092010201120122013China’sTotalForeignTradeVolume2005-2013Totalvalueofexports(trYuan)Totalvalueofimports(trYuan)%Growthofexports%Growthofimports55ChinaForeignTradeConditionsin2013Cross-borderE-commerceSimplifiesForeignTradeChineseProducer/ManufacturerChineseExporterForeignImporterForeignWholesalerForeignRetailerForeignConsumerDuetotheexcessivedependenceontraditionalsalesmodel,longtransactionduration,relativelylessprofitmarginsandalikeproblems,traditionalforeigntradeisincreasinglyunfavorabletothebusinessdevelopmentofsmallandmediumforeigntradecompanies.AsabusinessmodelbasedontheInternet,cross-bordere-commerceisrebuildingtheinternationaltradechainofSMEs.Bybreakingthemonopolyofforeignchannelssuchasimporters,wholesalers,distributorsandretailerswhichexistsintraditionalforeigntrade,cross-bordere-commerceenablescompaniestocontactwithindividualwholesalers,retailersandevenconsumersdirectly,whicheffectivelysimplifiesthetransactionandsavesgoodscirculationcosts.Therewasbasicallynotraditionalforeigntradecompaniesandmanufacturingcompaniesine-commercesectorpriorto2012,andtheybegantosetfootinthisareainabout2013.Cross-bordere-commerceisgraduallybecomingasignificantchoiceoftraditionalcompanies.ChineseProducer/ManufacturerOnlineMerchantCross-borderE-commercePlatformForeignOnlineMerchantForeignConsumerTraditionalForeignTradeCross-borderE-commerceChineseProducer/ManufacturerCross-borderE-commercePlatformForeignConsumerChineseProducer/ManufacturerCross-borderE-commercePlatformForeignOnlineMerchantForeignConsumer66PoliciesAboutCross-borderE-commerceMoreandMoreSupportivePolicies2004200520062007200820092010201120122013-2014A2004200520062007200820092010201120122013-2014EarlyStageDevelopmentStage2004-2007High-tideStageB2008-2012CSince20133policiespreliminarilyregulatethedevelopmentofe-commerce,placingextraemphasisontheindustry.10policiesinvolvingsupervision,paymentandsettlement,andsoon,placingextraemphasisonsupportandguidance.Morethan10policiesfocusingonexportandinvolvingimplementation.77PoliciesAboutCross-borderE-commerceDifferentCustomsSupervisionforDifferentKindsofCustomsClearanceRegardingthegoodstradedviacross-bordere-commerce,therearemainlythreemeansforgoodstocrossnationalboundaries:(1)Customsclearanceofgoods:forthesituationthatChineseimportandexportcompaniesdisplayproductsandmakeagreementswithforeignwholesalersandretailersonlineandfinishshipmentsoffline,thesegoodsshallbeincludedincustomsstatistics.Therearealsosomecompaniesbuildingcross-bordere-commerceplatformsforimportandexportcompanies,suchasOnetouchinShenzhenwhichhelpsSMEswiththeirforeignbusiness,andtheinvolvedgoodsarealsoincludedcustomsstatistics.(2)Customsclearanceofexpress:accordingtoasurveycarriedoutbyGeneralAdministrationofCustoms,morethan95%ofthegoodstradedviacross-bordere-commerceanddeliveredbythefivebiggestexpresscompaniesinChin