Opening up New Space for Foreign Trade Growth: How to Ride the Wind and Break the Waves in Cross border E-commerce

On July 6th, at the roundtable session of the 2023 Global Digital Economy Conference's "New Speed of Digital Foreign Trade and New Era of Cross border E-commerce" special forum, Shell Finance invited Bai Ming, a member of the Academic Degrees Committee of the Research Institute of the Ministry of Commerce, Wang Jian, director of the APEC Cross border E-commerce Innovation and Development Research Center, and director of the International Business Research Center of the University of International Business and Economics, as well as Luo Yonglong, a partner of PingPong, to discuss how cross-border e-commerce can develop with high quality in the context of the digital economy. Bai Ming stated at the roundtable forum that in the process of Chinese brands going global, the platform should move forward. Wang Jian believes that cross-border e-commerce is leading the transformation of the global market, causing changes in the global market structure. Changes in overseas policies and regulations are also one of the challenges faced by enterprises. Ping Pong partner Luo Yonglong stated that small and medium-sized enterprises need to rely more on ecological methods when going overseas.

In the past, our platform's main home was in China. Now we want to go global and move the platform forward to the target market. "Bai Ming pointed out that moving forward to the target market is not yet over, some are moving forward to overseas warehouses, and some are further connecting with the other party's network. There is one way of docking in this process, which is to connect China's network with someone else's online network. There is also a sinking network. Our Chinese e-commerce platform goes to someone else's place and connects with their offline wholesale and retail network. Therefore, according to the development level and characteristics of e-commerce in different countries, we can either move or sink, which is a different choice for each enterprise



What new situations and backgrounds are China's cross-border e-commerce facing? Bai Ming believes that with the high integration of digital industrialization and industrial digitization, cross-border e-commerce is more about trade creation and needs to open up new trade spaces. In the future, we need to consolidate the offline foundation for the online development of cross-border e-commerce. In recent years, we have actively built logistics networks and established overseas warehouses. In the future, we need to establish a more comprehensive system to support the development of cross-border e-commerce. Cross border e-commerce is not simply about online business behavior, it can also exist offline, combining the two.



Bai Ming stated that the demand for talent in the cross-border e-commerce industry is generally summarized as a "four wheel drive". Firstly, foreign trade oriented talents, as they are engaged in cross-border trade. Secondly, foreign language talents, as they involve different languages. Thirdly, professional technical personnel in manufacturing or product development need to be able to articulate the product clearly and fully understand user needs. Fourthly, information professionals must have a thorough understanding of various application scenarios and problems in e-commerce. From the perspective of platform operation, these four types of knowledge must be mastered.



But it doesn't necessarily mean that every platform participant needs to master so much content. Some foreign trade comprehensive service platform participants are not professional e-commerce personnel and do not understand foreign languages. Platform operators should understand this knowledge, but platform participants should also understand it, at least they should also be familiar with products and marketing if they don't, "said Bai Ming.



Wang Jian's cross-border e-commerce is leading the global market transformation



Wang Jian believes that cross-border e-commerce is the application of information technology in foreign trade, which has led to changes in foreign trade methods. Traditional foreign trade involves importers and exporters, wholesalers, and retailers. Of course, the biggest change in foreign trade is not only at the C-end, but also at the B-end. The development of e-commerce and cross-border e-commerce in China has given many foreign consumers more opportunities to choose products online. Cross border e-commerce is leading the global market transformation, causing changes in the global market structure.



What are the challenges faced by cross-border e-commerce? Wang Jian stated that from the perspective of enterprises, cross-border e-commerce is a new form of foreign trade, and many traditional Chinese enterprises are hesitant in cross-border e-commerce. Faced with both online and offline markets (300959), how to make decisions and operate may involve enterprise transformation or strategic transformation, and the concepts and practices may need to be updated.



In the international market, the challenge comes from cross-border e-commerce being a new business form and model, and foreign regulations and policies have also undergone adaptation and adjustment processes. Therefore, changes in regulations, policies, and rules have posed significant compliance challenges for enterprises. From the perspective of the Chinese government, many policies have been introduced to support the development of foreign trade and cross-border e-commerce, including trade digitization, which is also promoting changes in the concept of cross-border e-commerce enterprises.



Wang Jian believes that information technology, network technology, or digital technology have a profound impact on the global market. As an enterprise, technology can be used to improve operations and enhance efficiency. Cross border e-commerce can quickly obtain consumer preferences and changes in the overseas market, enabling product and service innovation. At present, many products have characteristics such as service-oriented, networked, and digital. Technologies such as the Internet of Things and artificial intelligence have integrated products into more services and network connectivity. When it comes to cross-border e-commerce talents, Wang Jian believes that in addition to establishing a corresponding professional system in universities, the most important thing is to combine scientific research, teaching, and enterprise practice. In terms of building a cross-border e-commerce talent system, the Ministry of Education now also promotes the integration of industry and education. Researchers should be encouraged to observe and practice in frontline enterprises, without being detached from reality.



Luo Yonglong's Small and Medium sized Enterprises Need to Use Ecology to Go Abroad



Small and medium-sized enterprises need to rely more on ecological means to go overseas, "Luo Yonglong explained using the company's own practice as an example. For example, PingPong has three networks, the first of which is directly licensed in the market accounting for nearly 90% of global GDP, becoming one of the most licensed cross-border payment companies in the world, supporting settlement in over 200 countries and regions. With these licenses, it means that all funds are under supervision and are safe.



The second is to establish a global financial cooperation network. PingPong has established in-depth cooperation with global systemically important banks such as Citibank and JPMorgan Chase, and has obtained membership qualifications from six major credit card organizations such as Visa and MasterCard. Through a clearing network built on top of 100+financial institution cooperation, it can provide customers with the best payment solutions. This network not only helps Chinese customers sell Chinese goods, It can also empower domestic banks with solutions to enhance their cross-border digital service capabilities.



The third is to organize a global ecological partner network. PingPong combines more than 100 mainstream e-commerce platforms, such as Amazon, Wal Mart, and more than 200 ecological service providers, such as FedEx, DHL, and Google, into a network to provide one-stop services for enterprise globalization.



What challenges do cross-border e-commerce enterprises face? Luo Yonglong stated that the first challenge is localization, which needs to adapt to the user needs, industry barriers, and regulatory requirements of the local market. There are different industry regulatory authorities in different industries, and there are certain differences between foreign and domestic regulations. In addition, cultural and religious differences are significant challenges faced by going overseas, requiring local teams to provide better services and products based on local differences, and accurately push them to users through operations. So the first step is to form a local team. The second step is to optimize the international supply chain, which requires addressing transportation and payment issues.



How to establish a cross-border e-commerce talent system? Luo Yonglong believes that international negotiation and digital operation capabilities are necessary. To conduct business overseas, it is necessary to localize the business and understand the local customs, religious beliefs, legal customs, and so on.