For China’s cross-border e-commerce, it’s ‘unstoppable momentum’ vs ‘big challenges’

China’s surging cross-border e-commerce industry, led by globally known marketplaces such as Shein and Temu, is likely to face “big challenges” – such as the US’ change in small-package duties and requirement for data localisation – a highly placed former official said on Thursday.

Jiang Xiaojuan, who used to be deputy secretary general for the State Council, told a Boao Forum for Asia panel that the prospect of foreign import tariffs on small packages – basically individual orders shipped in from China – could have a negative impact.

“At present, cross-border e-commerce is still in a relatively favourable policy environment, but judging from the signals sent by some countries, they seem to be considering adjustments, such as whether to reduce or exempt the tax exemption for packages,” said Jiang, now a professor at the Chinese Academy of Social Sciences.

Her comment comes as US President Donald Trump steps up tariffs around the world in a bid to rekindle American manufacturing by making non-US goods more expensive.

Days later, the US temporarily put the exemption back until authorities figured out how to collect tariffs on all the packages flooding across the border from China.