New foreign trade becomes a new engine for China’s exports

New foreign trade becomes a new engine for China's exports

On July 23, Alibaba International announced that in the first half of 2020, the actual transaction volume on the platform increased by 80% year-on-year (in USD terms), the number of orders increased by 98% year-on-year, and the number of paid buyers increased by 60% year-on-year.

According to the latest data from the General Administration of Customs, in the first half of this year, my country’s cross-border e-commerce exports increased by 28.7%, much higher than the overall growth rate of foreign trade. Among them, as the world’s largest B2B cross-border e-commerce platform, the growth rate of Alibaba International Station is nearly three times that of the industry.

“Transformation and digitalization of new foreign trade have become a necessary option and irreversible trend in global trade.” Zhang Kuo, general manager of Alibaba International Station, revealed that the actual transaction volume of international stations in June increased by 126% year-on-year, and it has remained three-fold since July. The growth rate of digits.

Stable European and American markets and fast emerging markets have become the incremental source of new foreign trade exports that continue to grow against the trend. In the first half of the year, there were 70 countries and regions with a year-on-year growth rate of over 100% in the transaction volume of international platforms. The United States, the European Union, and ASEAN are the three major markets for cross-border e-commerce exports. The United States, the United Kingdom, and Germany rank among the top three in terms of transaction volume. The United States’ growth rate is 91%, and the EU’s overall growth rate is 88%.

“This phenomenon does not conflict with ASEAN’s becoming China’s largest trading partner.” Zhang Kuo explained that the development of cross-border e-commerce depends on the digital foundation of both sides of the trade, and the degree of digital penetration in infrastructure such as logistics and payment in developed countries higher.

The growth rate of emerging markets is amazing. Six of the 10 ASEAN countries have entered the top 30 in terms of transaction volume, Thailand ranks eighth, and Laos, Cambodia and Myanmar have the fastest growth rates. The trade volume of some African countries has begun to take shape and has grown rapidly. Ethiopia has more than doubled, and Togo has more than tripled.

The performance of the industry reflects the three stages of overseas demand under the epidemic: epidemic prevention-housing economy-resumption of work and production. In the first half of the year, all 36 first-level industries on the international platform achieved positive growth. The top 10 industries by transaction volume are machinery, home gardening, consumer electronics, beauty and personal care, packaging and printing, sports and entertainment, health care, clothing, safety protection and building materials.

“Because China is the first country to comprehensively fight the epidemic and take the lead in getting out of trouble, resuming work and production, we are very clear about the demand trend of overseas markets.” Zhang Kuo said, the platform helps foreign trade companies to deploy in advance through industry trend reports and big data intelligent guidance And targeted to obtain overseas orders.

Online exhibitions played an important role in pulling. This year, Alibaba International Station will host 20 online exhibitions. The Home Health Exhibition in May and the Alibaba Online Fair in June have ended, and the industrial exhibition will be launched at the end of July. New digital tools such as cross-border Class B live broadcasting, audio and video negotiations, and 3D visits to exhibitions and factories are being widely used.

Stable and reliable cross-border supply chain to ensure that overseas orders are actually implemented. In the first half of the year, the number of cross-border logistics orders at Alibaba International Station increased by 113% year-on-year, the number of orders for intelligent customs system increased by 1448% year-on-year, and the scale of foreign exchange collection increased by 87%.

In recent years, the International Station has built a full-link digital cross-border supply chain system such as global payment and settlement finance, digital customs, and digital logistics, providing one-stop smart solutions. Since the epidemic, the International Station has taken the lead in promising to “insure the price and the cabin” and held the first cross-border supply chain service promotion.

“We must not only ensure the smooth flow of cross-border logistics and capital, but also do everything possible to help small and medium enterprises reduce costs.” Zhang Kuo said. On July 17, the “Spring Thunder Plan” of Alibaba International Station increased its weight and set up a special subsidy of 1 billion RMB to provide 6 months of transformation escort for traditional foreign trade companies that only obtained customers through exhibitions in the past.

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