China's Cross-Border E-Commerce Development in 2022: Going global, Optimizing supply chain, Focusing on Compliance and Sustainability

The policy research center of the Electronic World Trade Platform of Alibaba, China’s e-commerce behemoth, recently released an exclusive report on the development and prospect of China’s cross-border e-commerce.

In 2022, China's cross-border e-commerce industry continued to grow and evolve, with a focus on facilitating domestic enterprises to go global, optimizing import supply chain, enhancing compliance, and promoting sustainability. The industry has become an important driver of China's economic growth and global trade expansion, while enabling Chinese small and medium enterprises (SMEs) to enhance their competitiveness and expand their market presence, according to the report.  

Going global: Brand Strategy and New Models

In the B2C field, domestic cross-border e-commerce platforms, such as AliExpress, are helping Chinese enterprises build their brands and expand into new markets. AliExpress launched the "G100 Overseas Plan" in 2021 and the "Domestic Products Going Global" program in 2022, aiming to help Chinese SMEs give full play to their supply chain advantages, establish brand mentality in overseas markets, and create a favorable brand image among consumers.

In the B2B field, Alibaba International released the Digital Overseas 4.0 Plan in 2021, with a focus on incubating start-up and competitive brands, and helping them go global. In 2022, Alibaba International released the methodology for Chinese B2B brands going overseas, aiming to incubate 100 Class B cross-border benchmark brands in the coming year.

New models of cross-border e-commerce are also developing rapidly. The model of "livestream + cross-border e-commerce" has been widely used, and overseas independent brands of domestic enterprises are booming. For example, independent brand Shein has become a benchmark in fast fashion industry of cross-border e-commerce.

Optimizing supply chain: Meeting the Growing Demand for High-Quality Foreign Products

China's cross-border e-commerce imports are accelerating the optimization of the global supply chain to meet the growing demand of Chinese consumers for high-quality foreign products. Tmall Global has built a "fast lane" for global brands and SMEs to enter the Chinese market, and eWTP has cooperated with global eHub countries to introduce more high-quality overseas goods to Chinese consumers. For example, Malaysia's Musang King durian is now exported to China under the eWTP framework.

Enhancing Compliance: Standardization and Digital Solutions

The compliance process of cross-border e-commerce in China has been accelerating, thanks to the combined effect of the standard system and platform rules. China has actively promoted the standardization of cross-border e-commerce, with 41 national, industry, local, group, and enterprise standards in place. Digital platform enterprises, such as the eWTP, are actively building one-stop digital compliance solutions for SMEs engaged in foreign trade, helping them go global in compliance with relevant laws.

Promoting Sustainability: Integrating Social Responsibility into Business Plan

Digital technology enterprises have a shared obligation to integrate social responsibility into business plan and promote sustainable development. Alibaba's 2022 ESG report shows that energy conservation and carbon reduction have become objectives of many SMEs. Alibaba Cloud's "Energy Consumption Treasure" software is able to optimize electricity consumption through algorithms, reducing emissions to the environment and saving energy by an average of 10 percent for enterprises, and it has been used by nearly 1,700 enterprises.