Guangdong promotes e-commerce for growth

In a bold strategy aimed at bolstering its trade and investment profile, South China's Guangdong province on Tuesday unveiled measures to support its key cities of Guangzhou and Shenzhen so as to build international hubs for cross-border e-commerce.

The plan, entitled "Opinions on Implementing the 'Five External Linkages' to Promote High-standard Opening-up", outlined comprehensive steps to propel the province to the forefront of the global e-commerce landscape with a goal to exceed 1 trillion yuan ($138.24 billion) in annual cross-border e-commerce imports and exports.

Under the new plan, Guangdong will throw its weight behind Guangzhou and Shenzhen to transform them into international hubs for cross-border e-commerce by leveraging the province's strategic location, advanced infrastructure and robust logistics network to facilitate seamless trade flows across international borders.

A key component of the plan is the establishment of 20 "industrial cluster + cross-border e-commerce" parks, strategically located to maximize efficiency and connectivity. These parks will serve as incubators for innovation and collaboration, bringing together businesses, technology and logistics to drive the growth of cross-border e-commerce.

Furthermore, Guangdong aims to nurture 10 leading cross-border e-commerce enterprises with a scale of over 10 billion yuan, positioning them as industry leaders on the global stage. By providing targeted support and incentives, the province seeks to empower these companies to expand their reach and capture a larger share of the international e-commerce market.

In addition to building infrastructure and fostering enterprise development, Guangdong is also ramping up efforts to enhance the logistics capabilities of its cross-border e-commerce ecosystem. The province plans to construct 500 large-scale overseas warehouses to facilitate efficient storage, distribution and fulfillment of cross-border e-commerce orders.

To accomplish the trillion-yuan feat, the province is focusing on streamlining Customs procedures, improving regulatory efficiency and enhancing trade facilitation measures.

As China's top trading province, Guangdong achieved a remarkable two-way cross-border e-commerce trade volume of 843.3 billion yuan in 2023, marking a significant 25 percent increase year-on-year. This amounted to approximately 35 percent of the national total and surpassed 10 percent of Guangdong's overall foreign trade share.

However, with foreign trade accounting for 64 percent of Guangdong's GDP, there has been an urgent need to identify new growth drivers because Guangdong's total two-way foreign trade value registered only a marginal 0.3 percent year-on-year increase in 2023.

"With Guangdong's strong economic foundation and established position as a major trading hub, the opinion provides a clear roadmap for promoting cross-border e-commerce, signaling to businesses, investors and other stakeholders that the province is committed to facilitating growth in this sector," said Zhou Xuezhi, an assistant researcher at the Institute of World Economics and Politics, Chinese Academy of Social Sciences.

"This clarity and commitment are likely to instill confidence and attract investment, ultimately driving the development of cross-border e-commerce in Guangdong," Zhou added.