By 2025 the scale of China’s cross-border e-commerce B2B market will reach 13.9 trillion RMB

By 2025 the scale of China's cross-border e-commerce B2B market will reach 13.9 trillion RMB

The report “Digital Platforms Help SMEs Participate in Global Supply Chain Competition” released by the China International Economic Exchange Center on the 28th predicts that by 2025, the size of China’s cross-border e-commerce B2B market will reach 13.9 trillion RMB (RMB, the same below).

The digitization of trade has promoted the facilitation of trade, and the wide application of digital technology has greatly reduced the cost of international trade. The report shows that in recent years, the global cross-border B2B model (Business To Business, a marketing model for the exchange of products, services and information between enterprises through the Internet) has developed rapidly and has become the main body of cross-border e-commerce.

From the perspective of the global market, the global B2B e-commerce transaction volume in 2020 will reach about 7 trillion US dollars, and the compound growth rate from 2020 to 2027 is expected to reach 17.5%, accounting for about 80% of global e-commerce transactions. Since the outbreak of the new crown pneumonia, international trade and supply chains have been severely impacted, but cross-border B2B has shown a contrarian growth. It is estimated that by 2025, nearly 80% of global B2B transactions will turn to online.

From the perspective of the Chinese market, China’s cross-border e-commerce B2B market will account for about 72.8% of the overall cross-border e-commerce market in 2020, of which cross-border imports account for 28.9%, cross-border exports account for about 71.1%, and cross-border exports B2B e-commerce the market size exceeds 3 trillion RMB. It is estimated that from 2021 to 2025, China’s cross-border e-commerce B2B market will grow to a market size of 13.9 trillion RMB at a compound annual growth rate of 25%.

The report shows that in recent years, driven by policy, demand and supply chain, Chinese SMEs have shown a positive growth trend in participating in international supply chains. Digital platforms represented by Alibaba International Station, Dunhuang.com, etc., provide SMEs with integrated services of the whole industry chain and the whole supply chain, and promote more SMEs to integrate into global inclusive trade and participate in global supply chain competition. At the same time, it will help increase the added value of China’s manufactured export products, and the industry will move up the value chain.

The report also pointed out that there are still many bottlenecks and blocking points in the cross-border supply chain, which greatly increases the trade cost of small and medium-sized enterprises and hinders the further expansion of global inclusive trade. At the same time, the small order and multi-frequency transaction characteristics of the cross-border international supply chain of small and medium-sized enterprises have brought a series of challenges to the customs and government supervision of various countries, requiring the governments of various countries to strengthen cooperation. All links in the entire industrial chain carry out overall innovation.

The report recommends that the digital international supply chain will be a strategic node for creating a domestic and international dual cycle, and efforts should be made to expand the strategic layout of the digital international supply chain at home and abroad, increase policy support for small and medium-sized enterprises to integrate into the digital supply chain system, and step up the formulation and continuous optimization of digital international supply. Chain policy system, and actively lead the formation of a new framework of global digital supply chain and economic and trade rules.