The Expo will greatly benefit from the development of cross-border e-commerce.

The Expo will greatly benefit from the development of cross-border e-commerce.

Author Qian Tongxin

According to statistics, from 2001 to 2017, the total import and export volume of China's trade in services increased from 67.4 billion US dollars to about 696 billion US dollars, achieving a growth of more than 10 times.

The first China International Import Fair (hereinafter referred to as the "Expo") is in progress. It is worth noting that in the seven exhibition areas of the Expo, the only exhibition area without physical goods is the service trade exhibition area, which covers a large area, occupies 30,000 square meters of exhibition area, and gathers more than 450 foreign service trade leading enterprises from 90 countries and regions.

In today's highly globalized world, almost no country will deny the position of trade in services in the field of trade. Since the reform and opening up, especially in the 21st century, China has been actively expanding its opening up in service trade.

Import logistics service butt buyers

FedEx, one of the largest express transport companies in the world, is a major service trader in this Expo. It has a 180 square metre booth in the "service trade" area. The booth is designed as an apron scenario, on which a FedEx 777 cargo plane model is parked. It is fully open-ended. The exhibition space provides visitors with immersive experience and helps them understand FedEx's comprehensive international import logistics services and solutions.

FedEx announced before the beginning of the Expo that it would upgrade a series of solutions for import cargo transportation in the Chinese market, optimize the transportation process of import cargo, support the development of China's import trade with innovative technology and efficient services, and increase the response speed of "foreign pick-up service" from the original 1-3 days to 2 small ones. Within the time, the fastest shipment can be completed on the same day, and the recipient will receive the shipment the next day.

In order to expand the "import cross-border e-commerce solutions", FedEx and Customs cooperated to launch a "one-stop" import clearance solution for cross-border e-commerce retail (business-to-consumer, or B2C) items. Compared with other clearance modes of B2C cross-border imports in the current market, the obvious advantages of this scheme are efficient clearance by sunshine and rapid transshipment.

DHL, another major US express company, is also an important exhibitor in the service trade area of the Expo. Zheng Zheng, managing director of DHL e-commerce in Greater China and North Asia, told First Financial Journalist: "Entering the Expo is a very positive move of the Chinese government. With the improvement of living standards, Chinese consumers also hope to further enter the international market and obtain high-quality goods.

Cross border electricity providers most benefit

Statistics from the United Nations Conference on Trade and Development show that from 2005 to 2016, the share of world trade in services in total world trade increased from 20.63% to 23.71%, and the share of China's trade in services in total international trade also increased from 11.42% to 15.59%.

After joining the World Trade Organization (WTO), China's service trade has developed rapidly. In terms of the scale of international trade in services, according to statistics, from 2001 to 2017, the total import and export volume of China's trade in services increased from 67.4 billion U.S. dollars to about 696 billion U.S. dollars, achieving a growth of more than 10 times.

Zhao Liqiang, Bain's global partner, told First Financial Journalist: "In the future, if Chinese enterprises want to further participate in international division of labor and cooperation and enhance the status of global value chain, the development of trade in services has become an indispensable and important way."

Zheng Zheng said that the Expo will have two effects: one is that consumers can get global goods; the other is that it is also very important for the balance of China's economy. He said: "As our government actively attracts imports, it will be good news for our logistics operation, because it can balance our imports and exports from China and has a very positive effect on optimizing logistics routes and further improving the whole service."

On the eve of the opening of the fair, DHL also reached an agreement with Shopee, an e-commerce platform in Southeast Asia. Liu Jianghong, general manager of Shopee's cross-border business, told First Financial Journalist: "Because of the superiority of Chinese sellers in terms of quality and scale, their products are very popular all over the world, especially in Southeast Asia. Especially with the support of "one belt and one road", consumers will further help Chinese sellers explore overseas markets more efficiently.

In the first half of 2018, China's total cross-border e-commerce volume was 4.5 trillion yuan, up 25% over the same period, with 77% of cross-border exports, Liu Jianghong cited data. "Thus, export is the biggest driving force for cross-border e-commerce, and the growth is very considerable." He told the first financial reporter.

Liu Jianghong believes that the Expo is an important measure for the country to promote trade liberalization and economic globalization. He said: "In the current situation of very good foreign trade, we feel that the Expo will play a very important role in promoting cross-border e-commerce."

At the opening ceremony of the first Expo, Chinese President Xi Jinping pointed out that in the next 15 years, China is expected to import more than US$30 trillion and US$100 billion in imported goods and services. According to Ding Lei, CEO of Netease, this means that more and more countries and brands will benefit from cross-border e-commerce in China.

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