China to offer stronger policy support for cross-border e-commerce

China will continue to offer policy support to promote the growth of cross-border e-commerce, calling for deepened international cooperation and exchange, an official said Friday.

Li Xingqian, director general of the Department of Foreign Trade under the Ministry of Commerce, told a press conference that China's cross-border e-commerce trade rose 10.5 percent year on year in the first six months of 2024, 4.4 percentage points higher than the country's foreign trade growth.

From the market perspective, imports and exports with countries including France, Belgium, Spain, and Malaysia have seen relatively faster growth, Li said.

Based on a recent survey of enterprises conducted by the ministry, nearly 80 percent of cross-border e-commerce companies are optimistic about the growth momentum in the second half of the year, he noted.

Looking ahead, more measures will be taken to optimize the service ecosystem to better support the growth of cross-border e-commerce businesses.

"We will optimize the service ecosystem. We will fully implement the special policies for cross-border e-commerce, support the empowerment of cross-border e-commerce to drive the development of industrial clusters, and provide guidance to local authorities in fostering exemplary models in the industry. We will organize offline events to facilitate experience sharing among the integrated pilot zones of cross-border e-commerce. We will support the brand cultivation of cross-border e-commerce," he said.

Meanwhile, the ministry will leverage the role of local industry associations to strengthen industrial self-regulation, guide cross-border e-commerce enterprises to operate in compliance with regulations and engage in orderly competition, and actively fulfill their social responsibilities, said Li.

"In the second half of the year, we will hold the 136th China Import and Export Fair, also known as the autumn session of the Canton Fair, where we will continue to set up a special exhibition area for cross-border e-commerce. In addition, we will encourage Chinese logistics companies to strengthen international cooperation with postal enterprises in host countries, especially to enhance the last-mile delivery capabilities of cross-border e-commerce enterprises," said the official.

Li said enhanced international exchanges and cooperation in the area of cross-border e-commerce are encouraged, while the platforms should also expand their product categories and service functions.

"On the other hand, we will deepen international cooperation, actively participate in international multilateral and bilateral negotiations, give full play to the communication mechanisms such as the bilateral economic and trade committee and the trade facilitation working group, and promote the experience, practices and achievements of China's cross-border e-commerce development. We will vigorously develop Silk Road e-commerce programs, and support cross-border e-commerce pilot zones, industries and enterprises at all levels to actively engage in international exchanges and cooperation. We encourage cross-border e-commerce platforms to expand their product categories and service functions, supporting both the sound development of consumer-oriented e-commerce platforms and the innovative development of B2B platforms for industrial equipment, semi-finished products and components," he said.

China to offer stronger policy support for cross-border e-commerce

U.S. President Donald Trump's latest round of tariffs, which has sent jitters around the world, is threatening economic growth in Africa.

While most nations face a minimum tax of 10 percent to do business with the U.S., many others, including 20 African countries, have been penalized with reciprocal tariffs for running large trade deficits with the U.S.

Lesotho was hardest hit, fetching the highest rate of 50 percent, while goods from other African countries could cost the American consumer between 30 and 47 percent more.

The move has been met with astonishment across much of Africa.

"This is a fundamentally nonsensical, counter-historic step. It's a defensive one. If you want, the previous hegemon who created a free trade world order saying, this is not working for us, so we're going to de-leverage, if you want. We're going to shut down and we're going to re-industrialize. The fact of the matter is that that's not likely to happen, the cost will be much, much higher than the benefit," said Claude de Baissac, founder and CEO of Eunomix, an advisory firm that focuses on investment in Africa.

The harsh measures effectively nullify the protection of the African Growth and Opportunity Act (AGOA), a trade program that allows eligible sub-Saharan African countries to export hundreds of products to the U.S. duty-free since its establishment in the year 2000.

AGOA has underpinned growth in high-value products such as vehicles, agricultural produce and textiles.

Losing the agreement will have catastrophic consequences for countries that have come to depend on it.

"It will be detrimental to employment opportunities and whatever effects in the economy. But even in the long term, if the value and supply chains leave your economy, it takes more than just the labor away. It also takes innovation and technology and all the other factors that come with it. It's also being determinedly impacted," said Piet Croucamp, an associate professor with North-West University's Business School in South Africa.

However, AGOA isn't completely off the table just yet, as African leaders are confident they will be able to still strike a deal.

"The trade ministers are meeting sometime this month in the DRC at which AGOA would be on our agenda and the intention would be that we would also be able to formulate an approach collectively as we go and engage on AGOA," said Mpho Parks Tau, South African Minister of Trade, Industry and Competition.

AGOA comes up for renewal in September but there is no telling on whether it will last till then.

In the absence of the agreement, many African countries that already battle high debt rates may not be able to compete in the U.S. market, which could be a huge setback to trade and economic growth.

Africa's trade with US hangs in doubt with new round of tariffs