Workers sort out items in a bonded warehouse in Guangzhou.

Transaction of China’s trans-border e-commerce is expected to reach 12 trillion RMB ($1.82 trillion) by 2020, according to the evaluation of third-party organizations iResearch and China Investment Consulting.

Thanks to the Belt and Road Initiative, the annual growth of the country’s cross-border e-commerce will be maintained at around 20% in the next few years. The sector is expected to account for 37.6% of the total volume of China’s import and export business.

On Nov. 24, China’s Ministry of Finance said in a statement that the country will further reduce tariffs on consumer goods including food, healthcare products, medicine, daily chemicals, clothing, home appliances, entertainment, and groceries. The taxes will be slashed to an average of 7.7% from 17.3%.

This favorable policy will further boost the development of China’s cross-border e-commerce.