Shenzhen, a leading force in China’s cross-border e-commerce landscape, has shattered records in the first quarter of 2024. The city’s import and export volume in this sector surpassed a staggering 110 billion yuan (US$15.2 billion), marking a year-on-year surge of over 95%. This impressive figure not only sets a new high for Q1 but also represents more than half of Guangdong province’s total cross-border e-commerce activity during the same period.

As a barometer for China’s cross-border e-commerce industry, Shenzhen stands out due to its exceptional output value, extensive overseas warehouse operations, and robust logistics and supply chain systems. The city boasts a remarkable 150,000 cross-border e-commerce exporters – half of all Chinese sellers on prominent platforms like Alibaba’s International Station, Taobao Global, AliExpress, Lazada, and eBay. Additionally, Shenzhen contributes a third of Chinese sellers on Amazon.

This thriving ecosystem is fueled by the city’s supportive policies and a business environment conducive to growth. Well-known domestic platforms like Douyin (China’s TikTok), JD Worldwide, and Alibaba have all increased their investments in Shenzhen due to these favorable conditions. The city has also attracted global giants, with Southeast Asia’s Shopee, Russia’s Ozon, and Africa’s Jumia establishing their China headquarters there.

Longgang District serves as the epicenter of Shenzhen’s cross-border e-commerce development. Notably, three of the city’s five national e-commerce demonstration bases are situated within Longgang.

In a pioneering move, Shenzhen established a one-stop service model in 2023 to address challenges faced by cross-border e-commerce enterprises. This comprehensive system streamlines processes related to financing, customs clearance, foreign exchange settlements, and taxation.

Cross-border e-commerce, alongside general trade and processing trade, has become a powerful trifecta for China’s economy, acting as a new driving force for foreign trade growth. Shenzhen’s success story is evident: in 2023, the city’s cross-border e-commerce sector generated 326.53 billion yuan of foreign trade, reflecting a remarkable 74.4% year-on-year increase. Guangdong province as a whole also witnessed significant growth, with its cross-border e-commerce import and export volume reaching 843.3 billion yuan in 2023, representing a 25.2% year-on-year jump.