Navigating thru China’s cross-border e-commerce: How Thai SMEs collaboration can win over Chinese hearts?
For Thai SMEs planning to tap into the Chinese market, cross-border e-commerce (CBEC) is becoming a prominent and interesting option to consider.
EIC views that to enhance success in CBEC in China, SMEs need to position themselves strategically, especially on the following criteria
- 1) select products appropriate for CBEC platform
- 2) plan online-offline strategy – online via Chinese platform and offline in strategic locations with high Chinese tourist density in Thailand and
- 3) leverage online medium, for example, social media as tools to communicate with Chinese consumers and to create product familiarity.
- SMEs with limited financial ability should strategically collaborate to list stores and products on China’s online platforms. Collaboration between complementary products or in the form of a multi-brand store will help boost online presence. Other synergistic benefits are, for example, shared cost savings.
- To facilitate operations in China, SMEs could also hire experienced e-commerce professionals such as online merchant middlemen on Chinese platforms or companies that provide online business operation services.
China’s CBEC market is poised for continued strong growth, especially from China’s CBEC platform
According to AliResearch, China’s cross-border e-commerce import value reached CNY 900 billion in 2015. It is expected that by 2020, China’s CBEC import value will reach CNY 3 trillion, representing a compound average annual growth rate (CAGR) of 30%, a growth rate highest among all types of trade.
The stunning growth of imports via CBEC is expected to increase CBEC import value portion from 3% of total trade value (imports and exports via online and offline channels) in 2015 to as high as 9% in 2020 (Figure 1). Note that imports are mostly delivered from 2 distinct types of CBEC platform.
The first and most prominent CBEC platforms are Chinese-based with sponsorship by the Chinese government. These platforms aim to help foreign entrepreneurs connect with local Chinese consumers. Meanwhile, the second type is foreign owned, though with trivial usage. These platforms aim to provide Chinese consumers with more alternatives by offering products from foreign entrepreneurs.
Figure 1: China’s import and export value
Remarks: Traditional import and exports are ones that are not via CBEC platforms
Source: EIC analysis based on data from The Ministry of Commerce, General Administration of Customs, iRearch, Analysys.cn, AliResearch
China’s extraordinary growth in retail CBEC, especially imports, was fueled by relaxed government policy and improved payment services. In 2016, the Chinese government issued a very important piece of policy, the Cross Border E-Commerce Import (CERI), which provides preferential tax for cross-border e-commerce products.
Currently, there are three types of taxes that apply to general imports – import duties and consumption tax that varies depending on product category, and value added tax (VAT) of 17%. Under the new policy, eligible CBEC products will enjoy import duties exemption with consumption tax and VAT collected at 70% of the standard rate, but with a set quota. Individual buyers are allowed a limit of CNY 5,000 per single transaction with a combined quota of CNY 26,000 per year.
CBEC imports exceeding the quota will be taxed in a similar manner as general imports. In January 2019, the Chinese government further relaxed CBEC regulation with these notable changes 1) extending the list of goods eligible for preferential tax, 2) raising the single transaction quota from CNY 2,000 to CNY 5,000 and the annual quota from CNY 20,000 to CNY 26,000 Yuan, 3) expanding the new policy to 22 different cities from existing 15 to reach more citizens. Improved technological advanced in payment services that allowed safe and secured transactions from players such as Alipay or WeChat Pay also played a significant role in boosting CBEC growth. These new and…
Author: Pattharapon Yuttharsaknukul
Proposed Regulations in China Seek to Regulate After-School Tutoring Services
China’s Ministry of Education introduced new draft regulations to manage off-campus training in the after-school tutoring industry, following a crackdown in mid-2021. The regulations focus on prohibiting for-profit classes for core curriculum subjects in Grades 1-9, with fines up to RMB 100,000 for unlicensed services.
China’s Ministry of Education recently unveiled
On February 8, 2024, China’s Ministry of Education released the Regulations on the Management of Off-Campus Training (Draft for Solicitation of Comments) (hereinafter, the “draft regulations”). This new set of regulations for the after-school tutoring industry marks a substantial national-level effort to overhaul the sector. It follows a broader reform of the private tutoring industry initiated in mid-2021.
In this article, we delve into the specifics of the new draft regulations, shedding light on their potential implications within the broader context of China’s dynamic education sector.
Fast forward to July 2021, the Chinese government implemented a far-reaching crackdown on the private tutoring industry, effectively prohibiting tutors from conducting for-profit classes in core curriculum subjects. Dubbed the “shuangjian” or “double reduction” policy, its primary objective was to alleviate financial strains on families and reduce academic burdens on students by curbing excessive homework and after-school tutoring.
Notably, the regulations primarily targeted compulsory education (Grades 1-9), making it illegal to offer curriculum-based classes for profit. Conversely, non-academic extracurricular activities like art and sports remained largely unaffected, while high schools (Grades 10-12) experienced minimal disruption across academic and non-academic domains.
Building upon these reforms, in September 2023, China’s Education Ministry announced that unlicensed tutoring services in the country could face fines of up to RMB 100,000 (US$13,715.54). The announcement represents an example of the government’s broader strategy to reshape China’s education landscape.
For the first time, a clear definition of after-school tutoring is provided in high-level legislation. The term “off-campus training” as mentioned in the draft regulations is delineated as “organized or systematic educational training activities conducted outside the school education system, targeting primary and secondary school students as well as preschool children aged 3 to 6 with the main purpose of improving academic performance or cultivating their interests and talents”.
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China arrests more than 1,000 Tibetans protesting Chinese dam project
Police on Friday arrested more than 1,000 Tibetans, including monks from at least two local monasteries, in southwestern China’s Sichuan province after they protested the construction of a dam expected to destroy six monasteries and force the relocation of two villages, two sources from inside Tibet told Radio Free Asia.
The arrested individuals – both monks and local residents – are being held in various places throughout Dege county in Kardze Tibetan Prefecture because the police do not have a single place to detain them, said the sources who requested anonymity for safety reasons.
Those arrested have been forced to bring their own bedding and tsampa – a staple food for Tibetans that can be used to sustain themselves for long periods of time, the sources said.
“That police are asking Tibetans to bring their own tsampa and bedding is a sign that they will not be released anytime soon,” one of the sources said.
On Thursday, Feb. 22, Chinese authorities deployed specially trained armed police in Kardze’s Upper Wonto village region to arrest more than 100 Tibetan monks from Wonto and Yena monasteries along with local residents, many of whom were beaten and injured, and later admitted to Dege County Hospital for medical treatment, sources said.
Citizen videos from Thursday, shared exclusively with RFA, show Chinese officials in black uniforms forcibly restraining monks, who can be heard crying out to stop the dam construction.
Following news of the mass arrests, many Tibetans from Upper Wonto village who work in other parts of the country returned to their hometown and visited the detention centers to call for the release of the arrested Tibetans, sources said. They, too, were arrested.
The Dege County Hospital did not immediately return RFA’s requests for comment.
The Chinese Embassy in Washington hasn’t commented on the arrests other than in a statement issued Thursday that said the country respects the rule of law.
“China protects the legitimate rights and interests of Chinese nationals in accordance with the law,” the statement said.
Massive dam project
The arrests followed days of protests and appeals by local Tibetans since Feb. 14 for China to stop the construction of the Gangtuo hydropower station.
RFA reported on Feb. 15 that at least 300 Tibetans gathered outside Dege County Town Hall to protest the building of the Gangtuo dam, which is part of a massive 13-tier hydropower complex on the Drichu River with a total planned capacity 13,920 megawatts.
The dam project is on the Drichu River, called Jinsha in Chinese, which is located on the upper reaches of the Yangtze, one of China’s most important waterways.
Local Tibetans have been particularly distraught that the construction of the hydropower station will result in the forced resettlement of two villages – Upper Wonto and Shipa villages – and six key monasteries in the area – Yena, Wonto, and Khardho in Wangbuding township in Dege county, and Rabten, Gonsar and Tashi in the Tibetan Autonomous Region, sources told RFA.
Sources on Friday also confirmed that some of the arrested monks with poor health conditions were allowed to return to their monasteries.
However, the monasteries – which include Wonto Monastery, known for its ancient murals dating back to the 13th century – remained desolate on the eve of Chotrul Duchen, or the Day of Miracles, which is commemorated on the 15th day of the first month of the Tibetan New Year, or Losar, and marks the celebration of a series of miracles performed by the Buddha.
“In the past, monks of Wonto Monastery would traditionally preside over large prayer gatherings and carry out all the religious activities,” said one of the sources. “This time, the monasteries are quiet and empty. … It’s very sad to see such monasteries of historical importance being prepared for destruction. The situation is the same at Yena Monastery.”
Tibetans in exile have been holding mass demonstrations in various parts of the world, including in Dharamsala, India, home to the exiled Tibetan spiritual leader, the Dalai Lama.
In the past week, Tibetans have demonstrated before the Chinese embassies, including those in New York and Switzerland, with more such protests and solidarity campaigns planned in Canada and other countries.
“The events in Derge are an example of Beijing’s destructive policies in Tibet,” said Kai Müller, managing director of the International Campaign for Tibet, in a statement on Friday. “The Chinese regime tramples on the rights of Tibetans and ruthlessly and irretrievably destroys valuable Tibetan cultural assets.”
“Beijing’s development and infrastructure projects are not only a threat to Tibetans, but also to regional security, especially when it comes to water supplies to affected Asian countries,” he added.
Human Rights Watch told RFA that it is monitoring the development but that information from inside Tibet is extremely rare given China’s tight surveillance and restrictions imposed on information flow.
“People who send information out and videos like this face imprisonment and torture,” said Maya Wang, the group’s interim China director.
“Even calling families in the diaspora are reasons for imprisonment,” she said. “What we do see now are actually … typical scenes of repression in Tibet, but we don’t often get to see [what] repression looks like in Tibet anymore.”
Additional reporting by Pelbar, Yeshi Dawa, Tashi Wangchuk, Palden Gyal and Sonam Lhamo for RFA Tibetan. Edited by Roseanne Gerin and Malcolm Foster.
Read the rest of this article here >>> China arrests more than 1,000 Tibetans protesting Chinese dam project
Canberra ties the knot with Washington
Australia has shifted its strategy towards favoring the United States over China due to increasing fear of Chinese power and the competitive Indo-Pacific environment.
The ‘riding two horses’ strategy adopted by Canberra over the past 25 years has shifted in favor of the US alliance to counter China’s growing power. Previous prime ministers sought to balance relations between China and the US, with Kevin Rudd aiming for ‘true friendship’ with China while also promising military intervention if needed. Tony Abbott’s approach was driven by ‘fear and greed’, and John Howard acknowledged the benefits of a relationship with both countries.
However, Prime Minister Anthony Albanese has expressed a desire to strengthen the US alliance and cooperate with China while also engaging in Australia’s national interest. This shift is evident in actions such as sending a warship through the Taiwan Strait and introducing legislation to facilitate the AUKUS security partnership.
The Indo-Pacific environment has become more competitive, leading Australia to prioritize fear over greed in its alignment. As China’s GDP continues to rise and may overtake the US by 2030, Canberra’s strategy is likely to continue favoring alignment with Washington due to the lack of a viable alternative for addressing its fear of China’s power.
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