Cross-border livestreams rise as strong driver of China's foreign trade

A salesperson peddles goods during a cross-border e-commerce livestream at the Ganzhou International Inland Port in Nankang district of Ganzhou city, east China's Jiangxi Province. (Photo/Zhu Haipeng)

China's Ministry of Commerce (MOFCOM) said the country's cross-border e-commerce imports and exports reached 2.38 trillion yuan ($331.1 billion) in 2023, representing a 15.6 percent year-on-year increase.

Among these figures, exports accounted for 1.83 trillion yuan, reflecting a year-on-year increase of 19.6 percent.

The figures reflect new developments in China's foreign trade. Of these, cross-border e-commerce livestreams have emerged as a crucial means for foreign trade companies to secure orders and expand their global reach.

Industry insiders believe that the burgeoning development of new forms of foreign trade are conducive to the steady and high-quality growth of China's foreign trade.

"Over the course of two months, we have received more than 9,000 inquiries about our products from international buyers through livestreams," said Wu Xinhe, marketing chief of Maxevis, a company in Shenzhen city, south China's Guangdong Province.

Maxevis specializes in children's technology products, including smart water bottles. The company primarily serves customers in Europe, North America, and South America.

During the 2023 Spring Festival, the company chose to conduct cross-border livestreams on Alibaba.com. Each livestream attracted an impressive average of over 1,000 viewers, all of whom were professional buyers.

By leveraging centralized cross-border livestreams, Wu's company acquired hundreds of new clients and established agents in countries like the U.S.

"This efficiency has at least doubled compared to before," Wu said.

Data released by the MOFCOM at the end of January 2024 showed there are 645,000 enterprises nationwide engaged in import and export activities, with more than 100,000 of them being cross-border e-commerce entities.

Data from Qichacha, a leading platform offering company information inquiry services, also reveals that there are over 1.48 million livestream-related companies in China, and their registration volume has consistently shown positive growth over the past decade.

Data from Alibaba.com indicates that since 2023, the number of overseas buyers watching cross-border livestreams every day has increased by 127 percent year-on-year, resulting in a 156 percent growth in business opportunities for foreign trade merchants.

Data from China's online group discounter Pinduoduo showed that since the launch of Temu, a cross-border platform, in September 2022, the platform has expanded its operations in over 40 countries across five continents.

A recent report by Japanese media outlet Nikkei said Chinese e-commerce platform Temu had already amassed over 15 million users in Japan as of January this year. In roughly six months since its entry into the Japanese market, Temu has surpassed more than half of the average user base of Japan's top three e-commerce platforms.

South Korea's Yonhap News Agency reported recent data from South Korea's statistical department, which showed a 121.2 percent year-on-year surge in the import value of cross-border e-commerce from China to South Korea in 2023. This marks the first time that China has surpassed the U.S. as South Korea's primary source of cross-border e-commerce imports.

Meanwhile, overseas shopping and social media platforms like Amazon, Walmart, YouTube, Facebook, and Instagram are all exploring the potential of livestreams in boosting sales.

A report recently released by the National Academy of Economic Strategy at the Chinese Academy of Social Sciences indicates that livestreams have become a means to attract customers, both in China and abroad.

"The popularity of cross-border livestreams in China can be attributed to the country's robust supply chain, high-quality products, quick response to market demands, and appeal to consumers. These advantages are effectively showcased through cross-border livestreams," said Pan Helin, co-director of the Digital Economy and Financial Innovation Research Center at Zhejiang University's International Business School.

Advancements in artificial intelligence (AI) and algorithmic recommendations are bringing changes to live-streamed e-commerce in foreign trade, potentially impacting on traditional methods.

"In the past, livestream anchors would work tirelessly to sell products. However, the introduction of digital anchors has streamlined the process, requiring only one staff member to manage the livestreams. This not only reduces labor costs but also allows for longer livestreams, addressing the issue of hosts having to stay up late," explained Wu.