Can Cross Border E-commerce Save International Trade?
Tuesday, March 5, 2019 10:15 AM
BEIJING / ACCESSWIRE / March 5, 2019 / Trade tensions between the US and China have battered the economies of both countries, but the crisis has unexpectedly enlivened the budding e-commerce links between the two nations, according to Diane Wang, founder and CEO of DHgate, a leading Chinese cross border e-commerce platform.
Speaking in Atlanta at the three-day meeting of the APEC Business Advisory Council (ABAC), Ms. Wang came with a counter-intuitive message from China at a time of unprecedented gloom in the Washington Beijing bilateral relationship.
While many fear trade tensions would torpedo the budding cross border US-China e-commerce business, Ms. Wang sees hope: businesses on both sides of the Pacific are turning to e-commerce in an effort to manage the risk of trade friction she said.
Trade tensions, she said in a meeting with DHgate.com buyers and sellers, "would accelerate the penetration of cross border e-commerce into the traditional trading industry, forcing traders to think of new ways to do international business."
The current crisis in global trade is rooted in the economic inequality, whose benefits have accrued overwhelmingly to a narrow elite of multinational corporations. The next wave of globalization, according to Ms. Wang, needs to bring Small and Medium sized Enterprises (SMEs) into the equation, spreading the benefits of trade more widely.
A recent study by the University of Southern California makes clear that internationalizing SMEs enables them to break out of vicious low-growth, low-productivity cycles, allows them to access economies of scale and exposes them to innovations, technologies, and new business approaches.
However, lack of synergy among independently developed and operated SMEs programs across the region caused big inefficiency in international collaboration,
Therefore, Ms. Wang initiated the SMEs Global Value Chain Network (SG Network) on ABAC, a SMEs growth platform, to fully leverage each program's resources and expertise to strive for SMEs' digital growth and global expansion, by engaging SMEs policy makers, SMEs associations, service providers, digital platforms, SMEs, etc., through:
- Exchange information & inspire new ideas;
- Promote best practices & cross region programs;
- Explore collaboration & business opportunities
Few have demonstrated this logic better than the success of DHgate.com, which currently is the leading cross border e-commerce trade and service platform in China, linking more than 20 million small business owners from around the world, by providing full services from product listings, marketing, logistics, to payment, training, customs clearance, etc.