China publishes draft regulations aimed at developing cross-border e-commerce

UPDATE 1 – China publishes draft regulations aimed at expanding cross-border e-commerce

Adds cross-border businesses and growth context in paragraphs 2-3; additional details from the announcement in section 4

BEIJING, June 11 (Reuters) –China on Tuesday published draft regulations aimed at promoting the construction of overseas warehouses and developing cross-border e-commerce, which has become a significant force in foreign trade, according to China’s Ministry of Commerce.

Companies including Shein, PDD Holdings” PDD.O Ago and Alibaba 9988.HK AliExpress, which in recent years has been sending mainly products made in China “abroad” to markets around the world, is developing rapidly.

This has opened up a new growth path for some companies that previously focused on domestic consumption, which remains muted by the macroeconomic slowdown, the prolonged housing crisis and income uncertainty.

The Commerce Ministry’s statement, which included draft rules for both inbound cross-border e-commerce and outbound e-commerce, said it would also seek to improve cross-border data management and optimize supervision of cross-border exports.

The ministries said national ministries and government departments will improve financing channels and help cross-border e-commerce companies “enter the global market.”

Reporting by Albee Zhang and Casey Hall; Editing: Andrew Heavens and Miral Fahmy