On June 25, the 9th China-Eurasia Expo officially kicked off at the Xinjiang International Convention and Exhibition Center. The exhibition area of this exhibition reached 140,000 square meters, with six major areas, attracting visitors from 27 countries and regions, international organizations, 31 domestic provinces, autonomous regions and municipalities and Xinjiang production
More than 2,000 companies and institutions from the Construction Corps and 14 prefectures and cities in the autonomous region will participate in the exhibition. More than 80 economic and trade docking activities will be held during the exhibition, focusing on the four major areas of trade promotion, investment cooperation, consumption expansion, and innovation cooperation, to build an efficient exchange and cooperation platform for Sino-foreign economic and trade exchanges.
As a key supporting activity of this expo, the China (Xinjiang)-Central Asia “Silk Road E-commerce” Government-Enterprise Dialogue was grandly held in Urumqi on the morning of June 26.
At the meeting, senior experts in the cross-border logistics industry were invited to attend and give a keynote speech on “Cross-border e-commerce enters the era of rule reconstruction”, in-depth analysis of the changes in the industry under the trend of cross-border e-commerce compliance, and discussed with on-site representatives of government authorities, industry associations, and multinational enterprises a new path for the high-quality development of “Silk Road e-commerce.”
The speech pointed out that all the problems currently encountered by cross-border e-commerce are operational problems on the surface, but in essence they are that global trade rules are being systematically reconstructed. The industry is currently facing three core challenges: First, the impact of the business model. With the end of the tax-free era, the low-price promotion model is unsustainable, and platforms and sellers need to face cost reconstruction; second, the current cross-border e-commerce industry groups have insufficient service capabilities to cope with new global rules. Under the new global compliance rules, the cross-border e-commerce business model and traditional
The costs of unified general trade business models tend to be leveled, and cross-border e-commerce needs to find its own unique cost-effective market advantages in the new situation. However, the entire industry is still in the exploratory stage for comprehensive solutions under the new rules. Third, there is a lack of international mutual recognition mechanisms. Cross-border e-commerce has been regarded as a new form of international trade by most countries, and countries have also introduced more systematic regulatory rules. However, these rules are mostly limited to domestic application and lack unified rules for bilateral or multilateral mutual recognition at the international level.
Faced with the pains and opportunities of industry development, industry insiders have also made in-depth research and judgments on the future trend of cross-border e-commerce: on the platform side, it is necessary to feed back to sellers, reduce traffic fees by more than 30% to a reasonable range, and at the same time promote localized operations, establish an online + physical store O2O model, and promote the transformation of SKU standards to refinement and precision; on the seller side, F2C (factory to consumer) customized production, focusing on
Sellers with branding and independent website construction will be the winners in the future, and their core advantage lies in direct access to the terminal market; on the service side, third-party comprehensive service platforms will usher in huge changes. Future logistics service providers need to have full-process overall service processing capabilities, covering company registration, tax agency, import and export trade agency, logistics services, full settlement, financing and refined cost management, etc., to help sellers resolve up to 20% of potential sunk costs.
It is worth noting that, as my country’s strategic window for opening to the west, Xinjiang has unique advantages in the development of cross-border e-commerce.
Industry insiders said that after on-site inspections, it was found that westbound logistics has natural advantages. Xinjiang has obvious policy advantages under the overall situation of domestic tax compliance, especially the income tax concessions at border ports, which are favorable conditions for gathering enterprises.
Driven by the national unified market policy, Xinjiang has unique competitiveness in terms of business registration convenience (such as extremely low business registration threshold) and land transportation coordination.
Although the current comprehensive cost of westbound logistics is higher than that of the regular combination, it is mainly due to collaborative internal consumption. If this cost can be reduced through concentration and intensification, the level of logistics facilitation will be greatly improved.
In addition, we can take the lead in exploring the buyer credit transaction model in Central Asia, open up the credit reporting system and pilot “cash on delivery” to build trust, create an international model, jointly seize the opportunities and challenges in the era of cross-border e-commerce rule reconstruction, and help “Silk Road e-commerce” achieve high-quality development.
