Cross-Border E-Commerce: New policy could contribute to China, global economy

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01:46

One of the key topics at this year's Boao Forum for Asia is cross-border e-commerce. As more people in China shop online, cross-border e-commerce has grown rapidly in recent years. Against the backdrop of a challenging international environment, new government policies are being introduced to promote the growth of this new form of trade. Take a look.

More and more Chinese consumers are drawn to high quality products.

This explains the rapid growth of cross-border e-commerce in China's international trade. In 2018, China's retail imports of cross-border e-commerce reached 78.6 billion yuan, that's about 11.7 billion US dollars, and a 39.8 percent rise year-on-year.

The most popular items online? Digital home appliances, cosmetics, clothing, healthcare products and food.

And the good news: Chinese consumers can now shop more thanks to a new policy.

Effective January 1, the annual quota on cross-border e-commerce purchases for individual buyers will rise to 26,000 yuan from 20,000. And the tax-free limits on single transactions will increase to 5,000 yuan from 2,000.

It is estimated that China's cross-border e-commerce transactions will hit 23.3 trillion yuan by 2022.

However, experts say it's a warning sign that globalization is in reverse, and that rising protectionism could jeopardise the development of the industry.

As China continues to reform and open up, cross-border e-commerce could be at the forefront of breaking down barriers and bringing on more win-win development.