e-Izba publishes a report on the party-state support for Chinese e-commerce export development

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The Polish Chamber of Digital Economy (e-Izba), one of Ecommerce Europe’s national e-commerce associations, has published a new Report on the party-state support for the development of Chinese e-commerce exports. In particular, the report underlines how China’s e-commerce exports have grown rapidly in recent years, a growth that has been significantly accelerated by the COVID-19 pandemic. The growth rate of China’s e-commerce exports has outpaced that of total exports, with a significant portion of this growth occurring through the B2B model, which accounts over two-thirds of e-commerce exports. While the U.S. represents one-third of all Chinese exports through the e-commerce channel in 2022, the report finds that key export markets also include UK, Germany, and increasingly, ASEAN countries such as Malaysia and Singapore.

The Report highlights the very dynamic growth in the number of European consumers buying from Chinese sellers. In 2023, more than 40% of consumers in 15 EU countries and the UK made an online purchase from Chinese sellers. These products reach European consumers primarily through e-commerce platforms.

The Report emphasises that despite EU action in areas such as data protection, or product safety, issues regarding the competitive advantage Chinese companies gain from state support remain unaddressed. The Report then examines how the Chinese economy, under the influence of the Chinese Communist Party (CCP), has been increasingly supporting e-commerce exports since 2020. This support includes, for example, subsidies for opening e-commerce channels, setting up online stores, and covering advertising costs.

This support also extends to the creation of broad infrastructure facilities and favourable regulations. In addition, pilot zones and industrial parks, key elements of party-state support for e-commerce companies, have been established to promote the sector. These pilot zones offer tax incentives and financial rewards, creating an ecosystem in which Chinese authorities provide favourable customs procedures, tax policies, and logistics solutions.

The Report aims to show the unicity of the Chinese system, which is not the size of individual subsidies or other forms of support given to Chinese companies, but rather the variety of sources from which these supports can be obtained and the different purposes they serve. It is only when all these measures are added up that the full extent of the Chinese State’s involvement in the overseas expansion of Chinese companies can be appreciated. In this respect, the report concludes by recommending to the EU and national authorities to take some actions on this matter. You will find more information in the full Report available here.

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