China has deficit in e-commerce foreign trade
December 11, 2018 Category China News Round-up, Weekly
China’s goods trade via cross-border e-commerce platforms rose to CNY111.04 billion in the first 10 months of 2018, as the country continues to lift individuals’ annual transaction volume cap. Through this fast-growing sector, the country’s imports surged 86% year-on-year to reach CNY67.18 billion between January and October, while exports jumped by 173.9% year-on-year to CNY43.86 billion, according to the General Administration of Customs. “China will continue to adjust the product list and tax policies for cross-border e-commerce retail imports,” said Li Chenggang, Assistant Commerce Minister.
He made the remarks after the country released a policy on November 28 increasing the total number products to 1,321 under 63 tariff categories. The products include textiles and clothing, footwear, jewelry, certain food products, small household appliances, stationery, fitness equipment, wine, beer, telescopes, video game consoles and ski boots. As for transaction volume caps, the limit per transaction has been lifted from CNY2,000 to CNY5,000, while the annual cap has been raised from CNY20,000 to CNY26,000 per person. These caps will be further raised as people’s income increases in the future, officials said. Assistant Minister Li said that under the new rules, China will extend the policies currently implemented in the existing 15 pilot cities to another 22 comprehensive cross-border e-commerce pilot zones, including Beijing.
“Unlike general trade, cross-border e-commerce retail imports mainly serve to provide diversified and quality products to domestic consumers. The products must be sold to consumers directly and confined to personal use,” said Wang Wei, Director of the Department of Port Administration at the GAC. Cross-border e-commerce retail imports are for personal use and not subject to certain requirements such as first-time import licenses, registration or filing for record. “Cross-border e-commerce companies take the main responsibility for the quality and safety of goods. Cross-border e-commerce platforms must register with the authorities to conduct business activities in China, and bear the responsibility for up-front compensation,” Feng Jinping, Director of the Tariff Department of the Ministry of Finance, said, as reported by the China Daily.
In the past four years, Tmall Global has introduced nearly 19,000 overseas brands from 75 countries to Chinese consumers. More than 80% were new to the Chinese market. Chinese consumers have become increasingly drawn to foreign brands via e-commerce platforms.
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