International e-Commerce:New State, New Engine, New Industrial Structure
Time: 2016-03-23 11:43   Views:3884
Introduction:  On January 9 of this year, the State Council once again announced a group of new international integrated e-commerce pilot zones would be established in 12 cities. On March 5, Premier Li Keqiang pointed out in his "Report on the Work of the Government", "Foreign trades must be encouraged to be creative in their business modes. International e-commerce pilot zones are to be expanded, the establishment of a series of overseas export product warehouses to be endorsed, and the development of integrated foreign trade service businesses to be accelerated." All of these major measures show the central government's appreciation and expectation for the international e-commerce.

In recent years, the rapid growth of the Chinese international e-commerce played a vital role in maintaining the growth of the economy and foreign trades, encouraging innovation, entrepreneurship, and creativity, and accelerating the industrial upgrades. In fact, the international e-commerce has become the new engine of the Chinese economic growth, the new structure of the industrial transformation, and the new window of the reform and opening-up in the new era, and is shaping new rules of the international economy and trade in the Internet era.

International e-Commerce:New State, New Engine, New Industrial Structure, New Window, and New Rules

New State

In these years, due to the growing pressure from the economic downturn, the manufacturers' cost kept climbing, and the competitive edge of traditional foreign trades has been weakened. China is the top trading nation in the world, but its economic structure still needs perfection, and its foreign trade quality requires improving, making it more urgent for an industrial upgrade. Compared with traditional foreign trade, Chinese international e-commerce has been growing rapidly. According to the statistics of the Ministry of Commerce, there are currently more than 200,000 e-commerce businesses in China already, with over 5,000 platform companies. In last few years, the Chinese international e-business grew by about 30% annually, maintaining a high speed. In a global perspective, China is doing as well as the United States in terms of the e-commerce growth, totally surpassing economies like the European Union and Japan.

Now, all countries in the world are trying to boost their Internet economy and international e-commerce in order to take the vantage point for the future D-economy development. Meanwhile, some leading countries are even influencing and guiding the formulation and development of international e-commerce rules on the negotiations in the mechanisms such as the World Trade Organization, regional trade and economic cooperation, and free trade zones. Under the circumstances, it is both a major challenge and a once-in-a-long-time historical opportunity for China to accelerate its international e-commerce development in order to guide the formulation of the worldwide relevant standards and rules.

New Engine

The international e-commerce is turning into the new engine of the world's present economy growth. Under the condition of the traditional foreign trades, the export product reaches the consumer's hands through all the nodes of a supply chain, which thins the manufacturer's margin. While in the international e-commerce model, the international trade supply chain becomes more direct, weakening, if not replacing, some middle parts, and such costs can be converted into the margin for the manufacturers and the special offer for consumers. Therefore, by shortening the foreign trade industrial chain, it can provide more profitability for enterprises, enhance our international market competitive edge, and provide benefits for end consumers.

The international e-commerce can help upgrade the traditional international trade. On the one hand, the cost saved by from shortening the supply-chain middle nodes can increase the research and development investment, build the brand, improve quality, and perfect marketing and post-sales services, so that corporations gain increasing core competitiveness and achieve sustainable development. On the other hand, under the current global trend of "producing in small amounts frequently every now and then," manufacturers can take advantage of the international e-commerce to achieve digitalization and online presence so as to master a massive real domestic and foreign consumer data and international market demands directly, and realize smart production and industrial upgrade by connecting manufacturers, sales, and consumers with the use of C2B/C2M client-driven business/client-driven manufacturing model and the establishment of a flexible production supply chain.

As everyone knows, in recent years, our national labor cost has been going up annually, along with the appreciation of the RMB, our Chinese manufacturers and export trade businesses are under a heavy pressure of cost and price in the game of international trade. If Chinese businesses can gain advantage in developing international e-businesses, Chinese manufacturers can continue to maintain a certain edge when it comes to the cost and price, and even, in the same manner, effectively weaken the trade barriers and impacts on our businesses wrought by the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) in the future.

New Industrial Structure

The international e-commerce can not only accelerate the international trade, which includes those of the merchandise and the service, but also enable the rapid growth of relevant industries of all countries, e.g., logistics, finance, warehousing, and information services, thus forming a complete and substantial ecosystem of international e-business services, tapping into new tax sources and employment opportunities. Notably, our Chinese international e-commerce growth can help internationalize the renminbi. So far, the Chinese e-payment and relevant financial products priced in renminbi are maturing. Characterized by its rapid evolution and "producing every now and then," the international e-commerce provides the renminbi, the newly emerged international currency, a good opportunity to thrive, which will in turn make it a better future for the globalization of the Chinese currency.

The international e-commerce can help establish the global business online credit system. For quite some time, the credit building and presentation have been the bottleneck for small and medium-sized businesses in going global, and a serious obstacle in building the B2B international online transactions. Particularly, small and micro businesses don't have what it takes to showcase their states of credit, and thus are hard to secure orders internationally. The international e-commerce platform amasses data, and builds the global online transaction credit system step-by-step according to the general information, history transaction data, and other integrated information of the export company, making the credit a fortune, guaranteeing the interests of each and every consumer and business. So far, by developing the OneTouch integrated foreign trade services and setting up the enterprise "credit protection" system, Alibaba has achieved significantly in its global business online transaction credit system, and even has been providing a series of value-added services for small and medium-size businesses with it.

New Window

The international e-commerce has been turning into a new window for China's domestic reform and opening up policy in this new era. Currently, international e-commerce services pilot zones are being unfolded on full-scale in quantifiable cities. In March 2015, the Chinese International Integrated e-Commerce Pilot Zones (in Hangzhou) has been officially established, and it aims at solving the conflicts and systematic problems deep down in China's international e-commerce development via institutional innovation, management innovation, service innovation, and growth through teamwork, and forming a set of management system and rules that can adapt to and lead the global international e-commerce development step-by-step. In January 2016, the State Council deployed 12 new international integrated e-commerce pilot zones. In recent years, all Chinese pilot zone cities have been vigorously reforming as they are exploring on customs procedures, inspection and quarantine, foreign exchange and taxation, negative list system, and other aspects, actively and safely laying a good foundation for the reform and opening up policy as pioneers for the entire country in the new era of China.

The development of international e-commerce can significantly help drive the implementation of the proposal of "One Belt, One Road" and the common growth of China and other countries. The international e-commerce can help boost the trade and small and medium-sized business growth for China and countries along the "One Belt, One Road" by building a side track for backward countries and regions, and traditional industries to overtake other "cars" so that they can buy and sell globally, enhancing the mutual cooperation and common growth of all businesses and people of the countries on the "One Felt, One Road."

New Rules

The international e-commerce is causing a tremendous revolution in the global economy and trade, drastically reducing and removing the trade cost and obstruction between countries, leading the international trade into a borderless state step-by-step. The open, effective, and convenient trade environment built in international e-commerce will open up a wider access to the international market for businesses, especially small businesses, of all countries, and optimize the production and foreign trade industrial chain, providing a convenient platform and hard-won opportunity for product innovation and brand building, and expediting the advent of new international economic and trade rules suitable for the development of the upcoming data era.

In the past few decades, globalization has, to a certain decree, accelerated the global economic and social development, but, in more cases, it has helped the developed countries and embodied the interests of large corporations, while those of the developing countries and the vast majority of small and medium-sized companies haven't shared the benefit. In the meantime, the current existing international economic and trade rules, and the traditional trade negotiation mechanism can no longer satisfy, and are even restricting, the rapid evolution of global Internet economy and international e-commerce. Therefore, Alibaba proposes to establish an open and free World e-Trade Platform (eWTP) led by the private sector with the involvements of all parties keenly concerned, probe into and innovate the international trade standardization, the business models, and the trade rules of the Internet era together, and constantly keep it in practice and growing. It is hoped that this new mode of "rule evolution rapidly caused by the drive of business" can better fit in the rapid growth of the global D-economy and international e-commerce, make free and fair trade a fundamental right for each business and individual in the world, and better enhance the small and medium-sized businesses' development, young people's growth, consumption globalization, and the universally beneficial trade evolvement.

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