China-Russia Economy: Cross-border e-commerce a new growth point for trade
Updated 17:23, 09-Jul-2019
Trade between China and Russia was worth more than 100 billion US dollars in 2018, and the two countries expect it to double in the next few years. Cross-border e-commerce still accounts for only a small portion of that, but CGTN's Feng Yilei has been talking with industry insiders who hope for strong growth in the sector.
Clothes, electronics and other popular made-in-China goods— this specially established international logistics center in Harbin handles more than twenty thousand small parcels a day.
Within a few weeks, they will reach their buyers, who have ordered from Chinese merchants online, across the vast territory of Russia. It is one of many signs of booming e-commerce between the two countries.
SERGEY INIUSHIN RUSSIA'S TRADE REPRESENTATIVE IN CHINA "Russian consumers used to shop on U.S. or European e-commerce platforms but now most of them use Chinese ones like Alibaba. But there are problems that still need to be tackled- Chinese goods sold to Russia account for the vast majority of the total China-Russia e-commerce turnover."
Many see a bright future as China-Russia cross-border e-commerce hit 3.7 billion U.S. dollars, up more than 20 percent year on year, in the first three quarters last year.
At this year's China-Russia Expo, experts from both sides come together to exchange experience to better exploit the market potential. And their primary task is to face the challenges.
TAO SHA, CEO EPINDUO "We realize that imported Russian products are mostly prepackaged food with limited profit margin. Popular Russian meat and dairy products still face import restrictions. Household chemicals have long import procedures and low brand awareness. Besides, only very few goods meet shelf-ready criteria of big Chinese e-commerce platforms."
Traders want a more favorable environment. Last year, China and Russia signed a memorandum of understanding to establish a bilateral e-commerce cooperation mechanism.
At a local level, Harbin has also been greenlighted as one of the cities to establish cross-border e-commerce pilot zones.
WANG ZIXU, VICE GENERAL MANAGER HARBIN INLAND PORT OPERATION DEVELOPMENT "Traders can stock up in advance in our bonded zone to shorten logistics times and enable domestic consumers to experience the products here. Tax relief policies on relevant enterprises and a white list applied for e-commerce goods contribute to lower prices and a bigger variety of products. And more efficient customs clearance will allow consumers to get their orders very soon."
E-commerce giants also seek to work more closely with local operators with know-how in product updates, cost control, supply chain and promotions.
FENG YILEI HARBIN "And on the platform of the China-Russia Expo, many deals have been made among players in the field of cross-border e-commerce to further develop their business models and expand businesses. All these are expected to enable consumers to buy from around the world - quicker and cheaper - with just one click. Feng Yilei, CGTN, Harbin."