PayPal expects more cross-border e-commerce from China despite geopolitical uncertainty

How PayPal expands in China, the U.S. digital payments platform expects local merchants selling abroad to see continued growth in cross-border e-commerce despite growing geopolitical and regulatory challenges.

“We are seeing strong interest from (Chinese) merchants looking to expand into both Europe and the United States, and we believe this trend will continue,” said Michelle Gill, head of PayPal’s small business and financial services group . in an interview in Shenzhen on September 25. “There is both local demand in the U.S. and a desire to expand from China.”

Over the past few years, the number of Chinese sellers selling abroad has increased rapidly in the face of a slowing domestic economy and as market entrants such as PDD holdings“They open up new possibilities for this. This has caused friction in the US and Europe, where governments are considering imposing tariffs on Chinese imports.

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While it is too early to determine the impact of this change, Gill said there will be growth opportunities for companies that get creative in how they serve consumers. “Demand will ultimately either drive prices up to the point where it doesn’t matter, or people will bundle things together to make that access easier,” she said.