China cross-border eCommerce channels

The growth of e-commerce channels in China, particularly since the COVID-19 pandemic, present new opportunities for U.S. exporters to reach Chinese consumers.  Cross-border e-commerce channels now provide unprecedented access to markets across China. This is due to improvements in delivery methods, policies that allow direct-to-consumer cross-border transactions and exemptions of certain goods from registration, Chinese labeling, and testing requirements. 

Major cross-border e-commerce channels include TMall Global & Kaola, JD Worldwide, VIPShop, Suning Global, and Little Red Book.  Larger sites such as TMall Global & Kaola, JD Worldwide, and VIPShop comprise over 80% of Chinese cross-border e-commerce traffic. Smaller sites, including Little Red Book and Suning Global, have established themselves as trusted cross-border retailers in specific product lines: cosmetics, fashion, luxury goods, and household appliances. 

In 2020, China’s cross-border e-commerce imports reached a value of $88.2 billion, an increase of 16.5 percent over 2019.  Over 68 percent of Chinese consumers report considering foreign goods as better quality, particularly in the fashion and beauty industries, which make up the largest segment of e-commerce imports.   

The Chinese government is supportive. The State Council recently established 46 cross-border e-commerce pilot zones where businesses benefit from preferential tax policies and streamlined customs procedures, bringing the total number of such zones to 105. Depending on the product, items sold to Chinese consumers from these zones benefit from a reduced import tariff, lowering the overall tax. 

For more information, contact Ms. Janet Li at janet.li@trade.gov.