Introduction

• CBEC is a form of e-commerce that allows consumers to purchase products from overseas sellers through online platforms.
• CBEC is popular in China due to the demand for high-quality, authentic and niche products that are not available or expensive in the domestic market.
• CBEC also benefits sellers by reducing trade barriers, tariffs and logistics costs.

Main Body

• CBEC achieved a total import and export volume of RMB 1.69 trillion in 2020, up 31.1% year on year, accounting for more than 30% of Chinese foreign trade¹.
• The Chinese government has supported the development of CBEC by establishing 35 CBEC comprehensive pilot zones in various cities, offering preferential policies such as tax exemptions, simplified customs clearance and bonded warehousing².
• The main CBEC platforms in China are Alibaba, NetEase Kaola, VIP.com, Tmall Global and JD Global, which have different features, target segments and competitive advantages³.
• CBEC has boosted China’s consumption by providing more choices, lower prices and better quality for consumers, especially in the categories of cosmetics, health products, food and beverages, maternal and baby products, and fashion⁴.

Conclusion

• CBEC is a key tool for brands to enter the Chinese market and reach millions of potential customers.
• CBEC is also a driving force for China’s economic growth and consumption upgrading.
• CBEC faces some challenges such as regulatory uncertainties, consumer trust issues and cross-border logistics inefficiencies.
• CBEC has a bright future as China continues to open up its market, improve its infrastructure and foster innovation.