Chinese Sellers Thrive Overseas

In 2024, several sectors continued to thrive, with cross-border e-commerce standing out as a key area of growth. As China’s export e-commerce industry rapidly expands, the scope of its influence has spread across the globe, with sellers from small towns to large cities riding the wave of international digital commerce.

Cross-Border E-commerce: A Rapidly Growing Sector

Cross-border e-commerce has become a widely recognized and lucrative industry, showing significant growth over the years.

According to China’s General Administration of Customs, the country’s cross-border e-commerce imports and exports reached RMB 1.22 trillion in the first half of 2024, representing a 10.5% year-on-year increase, which outpaced overall foreign trade growth by 4.4%. This demonstrates the growing prominence of cross-border e-commerce in China’s economy.

Driven by advancements in logistics and e-commerce platforms offering streamlined services such as full and partial fulfillment models, cross-border e-commerce has become a hot trend.

Traditional sellers and manufacturing businesses are now entering platforms like Amazon and Temu, further diversifying the landscape.

By mid-2024, China boasted over 120,000 active cross-border e-commerce entities and more than 2,500 overseas warehouses, with a combined floor space of over 30 million square meters.

Chinese Goods in High Demand Globally

August saw continued growth in China’s international freight routes, primarily serving cross-border e-commerce needs.

Ten new international air routes were launched, with more than 30 round-trip flights per week, reflecting rising global demand. Markets in North America, Europe, and Asia are key destinations for Chinese sellers, with North America seeing the highest number of new routes.

The impact of Chinese goods is particularly visible in Europe, where Chinese e-commerce platforms dominate market share.

For instance, in Spain, Chinese platforms account for a staggering 34% of the market. The U.S. remains China’s largest cross-border e-commerce destination, contributing 37.4% of export e-commerce sales in 2023.

Beyond traditional markets, demand for Chinese products is also surging in emerging regions like South Korea, Southeast Asia, and Australia.

South Korean customs data for the first half of 2024 showed a 55% year-on-year increase in cross-border imports, with 72% of imported items originating from China. In Australia, over 2 million consumers shop regularly on Chinese platforms like Temu and SHEIN, posing significant competition to local retailers.

China’s Cross-Border E-commerce Powerhouses

Guangdong province remains a major player in China’s cross-border e-commerce ecosystem, with Shenzhen as the focal point.

In the first half of 2024, Guangdong recorded RMB 4.27 trillion in cross-border e-commerce trade, up 130% from the same period in 2023. Shenzhen, often referred to as China’s e-commerce hub, alone accounted for over 8,000 e-commerce sellers and reported over RMB 800 billion in GMV in 2023.

However, other regions are quickly catching up. Cities like Qingdao, Hangzhou, Yiwu, and Suzhou have emerged as important centers for cross-border e-commerce.

These cities are fostering thousands of e-commerce businesses and facilitating significant trade volumes, thanks to their well-established industry clusters.

E-commerce and Industry Integration

The integration of cross-border e-commerce with China’s industry belts has been a driving force behind the sector’s rapid expansion. Products from Guangdong, Zhejiang, Fujian, and Jiangsu dominate export categories, ranging from electronics and textiles to consumer goods and industrial tools.

Industry-specific export hubs have been established in these regions, helping to create a seamless pipeline for manufacturers to reach global markets through platforms like Amazon and eBay.

For example, the city of Yiwu, famous for its small commodity trade, now supports over 40 independent cross-border e-commerce websites. Zhejiang province, meanwhile, saw a 38.5% increase in exports in the first half of 2024, driven by its vibrant industrial clusters.

Policy Support for Cross-Border E-commerce

China’s government has implemented a range of supportive policies to fuel the growth of cross-border e-commerce.

In June 2024, the Ministry of Commerce and other departments rolled out measures to boost e-commerce exports and optimize overseas warehouse deployment. Additional tax incentives and streamlined logistics processes have further encouraged businesses to engage in cross-border trade.

Moreover, many cities have introduced localized initiatives to foster e-commerce. For example, Zhejiang province aims to double its cross-border e-commerce trade volume by 2027, while Guangdong has consistently maintained its status as the national leader in cross-border trade.

The Road Ahead for Cross-Border E-commerce

As Chinese sellers continue to expand into international markets, their influence in the global e-commerce landscape will only grow stronger.

The rise of platforms like Temu and SHEIN has provided new avenues for small- and medium-sized businesses to compete on the global stage, ensuring that China remains at the forefront of digital trade.

In the coming years, the growth of China’s cross-border e-commerce sector will likely be bolstered by technological innovation, industry integration, and supportive government policies, making it one of the most dynamic and profitable sectors in the global marketplace.