New economic growth driver seen as most dynamic sector, with $25 trillion in transactions worldwide in 2015 and that figure set to increase dramatically

The e-commerce industry, led by China, is a new engine of growth for the global economy, experts said at the 2017 China International Fair for Investment and Trade held in Xiamen, Fujian province, from Sept 18 to 21.

"Our research confirms that e-commerce has grown dramatically in recent years, making it one of the world's most dynamic economic sectors," Ralf Bredel, head of the UN Industrial Development Organization's regional office for China, South Korea and Mongolia, said at the World E-commerce Conference at CIFIT on Monday.

According to the latest estimates, the value of global e-commerce transactions stood at over $25 trillion in 2015, a figure that is set to rise with increasing internet penetration and recognition, Bredel added.

"As in so many other sectors, China is leading the way in this important area, and other emerging economies and developing countries stand to learn a lot from China's experience," he said.

E-commerce trading in China reached 26.1 trillion yuan ($3.8 trillion) in 2016. Cross-border e-commerce surpassed 5 trillion yuan, up 28.2 percent, statistics from the 2016-17 Chinese E-commerce Development Report show.

Among the top 10 biggest e-commerce companies, four are from China, Bredel said.

 

In June this year, the number of online shopping customers in China reached 514 million, 10.2 percent higher than in December 2016, the report said.

About half of Chinese enterprises use online sales channels with a trading model based on platforms and services, which has become an important trend in the upgrading and transformation of the traditional market, the report said.

The first half of this year saw a surge of 33.4 percent in internet retail sales across the whole country, according to the report.

Zhu Hongren, standing vice-chairman of the China Enterprise Confederation, said at one of CIFIT's forums that the exchange of information on online platforms offers more choice and convenience.

It encourages faster commodity circulation, decreases costs and improves competitiveness, Zhu added.

E-commerce and related industries involve 37 million employees. Even more job opportunities will be created, including customer service and internet technician roles.

Twelve Chinese cities have cross-border experimental zones.

By the end of 2016, 180 of the world's 314 cross-border e-commerce companies had operations in Shanghai, making it the third-largest cross-border e-commerce headquarters in the world, the Chinese E-commerce Development Report showed.

Dhgate, an online Chinese business-to-business e-commerce company, has trained more than 3,000 small and medium-sized companies from 21 countries.

E-commerce in rural areas has developed quickly in China, boosted by government policies and countryside centers set up by internet giants such as Alibaba and JD.

Yang Jianzheng, director of the E-commerce Research Institute of the University of Shanghai for Science and Technology, said at the forum that in the future, cross-border e-commerce will become a new growth point, thanks to the ideal business environment fostered by the Belt and Road Initiative and structural supply side reform in China.

The coming years will also see the integration of online and offline services, as well as more intelligent and innovative online retail sales models, Yang added.

IT technology, including cloud computing, big data, internet of things, artificial intelligence and virtual reality, will play a more important part in the whole e-commerce industry, he said.

"Without the support of technology, the Nov 11, large-scale online shopping festival organized by Alibaba, would not be possible," Yang said.

This year's CIFIT also emphasizes intelligent manufacturing, internet finance, and global mergers and acquisitions.

A cross-border exhibition pavilion was established for the first time at the fair.

The World E-commerce Conference is held at the 2017 China International Fair for Investment and Trade in Xiamen, Fujian province.Provided To China Daily

(China Daily 09/20/2017 page12)