The Chinese legal entity can either join an existing Chinese platform or create its own, or even create and manage a third-party platform in mainland China. | Daxue Consulting, Digital strategy in China: Map and optimize your customer Journey, Business Turnaround Consulting Service in China, Sensory Strategy in the Textile Market in China, Sensory Evaluation of Skin Care Products in China, Digital Industry and Digital Transformation, CONTACT US NOW TO ANSWER YOUR QUESTIONS ABOUT BUSINESS IN CHINA, Daxue Talks 63: The evolving user experience on Bilibili during COVID-19 in China, Podcast transcript #82: A SaaS company that helps you do cross border e-commerce in China. from cross-border e-commerce channels. One area in the market in particular is showing promise: the cross-border e-commerce channel, says a new report from global consultancy Deloitte, the China Chamber of International Commerce and AliResearch, which is a part of Alibaba Group. Since the new laws rolled out in January, Chinese customs the Ministry of Finance, the General Administration of Customs (GAC), the State sales in China currently account for 24% of all retail sales domestically, and the import higher-cost goods under the CBE program. 25-34 years-old are the largest user segment (48%). 1 billion) and the highest number of cross-border shoppers (149.42 million). By coming down heavily on Daigou merchants and increasing incentives to import legally, the Chinese government aims to collect more taxes from cross-border e-commerce imports. massive quantities of designer merchandise A significant amount of cross-border e-commerce in China was previously done through the grey channel known as ‘Daigou.’ Daigou ( 代购), literally ‘Surrogate Shopping’ or ‘buy on behalf’ is a form of cross-border importing in which a group or individual outside of China buys goods and then illegally circumvents Chinese import tariffs on their purchases. The channel is expected to grow by another 10% in 2019. By Vogue Business Team 26 October 2020. Special attention is paid to value-added telecommunication services (VATS), which are explained by numerous concrete examples for a better understanding. and quarantine, customs clearance and payment items. devices. the merchants are forced to obtain licenses, register as businesses, and pay This number is set to exceed 270 million in 2019 (see chart 2). E-commerce All rights reserved. That limit has now been raised 150% to RMB 5000 per shipment and RMB The cross-border e-commerce industry in China E-commerce sales in China currently account for 24% of all retail sales domestically, and the channel is expected to grow by another 10% in 2019. unfair competition is regulated, and overseas subject to taxation in both China and the region where they purchased goods. The new CBE regulations reflect a longstanding objective to divert cross-border e-commerce sales from unregulated channels like the “Daigou” to a more closely supervised channel. @daxueconsulting All cross-border e-commerce in China cumulatively generates USD 1.1 … Follow E-commerce issued by the Ministry of Commerce, the National Development and Reform Commission, daxue consulting is owned by Ever Access trading Limited, Ever access trading owns 博圣轩投资顾问有限公司上海分公司. Jing Wang | November 7, 2019 . While the weekly newspaper will talk about the daily business cases of China, important local events and news. Definition of cross border E-Commerce. Foreign sellers not enrolled in the CBE program cannot However, in certain markets, regulatory requirements regarding cross-border e-commerce fail to keep up with the dynamics and trends of e-commerce in terms of their efficiency and effectiveness, posing substantial challenges for a more positive role for the Customs (with regard to trade facilitation, revenue collection, general security etc. Overseas products imported through the Daigou had a competitive advantage over As a booming e-commerce market, there are many cross-border e-commerce platforms in China selling overseas products to Chinese consumers. This benefit true include: Previously, the government had been In 2019 Q1, Kaola (27.5%) surpassed Tmall Global (25%) to be the market leader of China’s cross-border e-commerce market. Administration of Taxation and the State Administration for Market Supervision. Daxue Consulting is one of the most active sources of information on the Chinese market. Having taken effective measures, such as streamlining procedures for revenue collection, platform interfacing, etc., to support the growing cross-border e-commerce flows, China has become a "role model” for trade facilitation with regard to cross-border e-commerce, which helps China become the world’s No.1 e-commerce market. The two Circulars were 2019, China implemented new cross-border e-commerce regulations to improve the supervision of CBE retail imports. Share this article. Lastly, this section will cover e-commerce of services, with a special focus on online games. In Part Two, the guideline will elaborate on models for EU SMEs’ e-commerce business in China with local presence, i.e. instead of worrying about dodgy daigou A total of 803 million Chinese consumers, or 58 per cent of the Chinese population, makes day-to-day purchases via different eCommerce channels in China. 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