e-Commerce Boosts China-ASEAN Trade

e-Commerce Boosts China-ASEAN Trade

e-Commerce Boosts China-ASEAN Trade

One of the Key solutions is to expanding business in China is online.  e-Commerce can add billions of RMB Yuan companies sales every month.

An increasing number of companies in ASEAN are seeing e-Commerce as a new growth engine for China-ASEAN trade.

e-Commerce giants are also trying to tap into a market with a population of about 2-B and growing purchasing power.

“China and ASEAN has great potential for cooperation in e-commerce,” says Qian Keming, China’s vice minister of commerce, on the sidelines of an Expo that ran from Tuesday to Friday in Nanning, capital of Guangxi Zhuang Autonomous Region.

Many Chinese e-Commerce companies have already launched campaigns in ASEAN, improving bi-lateral trade.

JD.com, for example, sold more than 115,000 Thai durians to Chinese customers in 1 day in May, a record on its fresh food e-Commerce platform.

Suning.com, another e-Commerce platform in China, operates a China-ASEAN e-Commerce platform, which was established in late Y 2016. It has had well over 1.2-M orders and sales over 26-M RMB Yuan.

“For Suning’s overseas operation, the Southeast Asia market is of significant strategic value,” said Fan Chunyan, Vice President of Suning.com.

On the sidelines of the Expo, the Guangxi branch of China Post signed a MOU (memorandum of understanding) with the Malaysia External Trade Development Corporation, promising to sell Malaysian products, including coffee and beauty products, on its e-Commerce portal ule.com.

Ong Ka Chuan, 2nd Minister of the Malaysian International Trade and Industry Ministry, says he believes China’s success in e-Commerce could assist ASEAN to build a platform for businesses to grow and integrate into the global eco-system.

China and ASEAN will have more cooperation opportunities in e-Commerce with the help of the Belt and Road Initiative, he says.

For e-Commerce to further gain steam in ASEAN, many challenges remain, such as in logistics.

Tao Yu, Vice President of DHGate.com, a cross-border e-Commerce site, says customs clearance in some ASEAN countries can still be relatively complicated, requiring local as well as cross-border e-Commerce companies to better cope with the issue.

Another challenge comes from cross-border payment methods.

While 3rd-party mobile and online payment platforms such as Alipay and WeChat Pay have gained increasing popularity in China, their presence in ASEAN is limited.

Pornchai Tarkulwaranont, Vice Minister of Thailand’s Ministry of Science and Technology, says the use of digital currency and online payments is the most important factor to speed up the growth of e-commerce in ASEAN.

Advanced technologies such as blockchain are considered as solutions to cross-border payment, and many ASEAN countries, including Thailand, are already experimenting with them, he says.

Have a terrific weekend.

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

Latest posts by Paul Ebeling (see all)

You must be logged in to post comments :