Since the late 20th century, with the development of computer network technology and the establishment of electronic information networks connecting the world, network globalization has become possible and the time is ripe for applying the Internet for global trade. Through the Internet, importers and exporters as the main body, banks as payment and settlement intermediaries, and the use of network databases to establish business links, thus forming a new business model. The emergence of cross-border e-commerce has broken the limitation of time and space, changed the traditional trade mode, and facilitated enterprises to discover markets, reduce costs and improve competitiveness, so as to enter the international market and participate in international competition.
1 Overview of cross-border e-commerce and its current situation
Cross-border e-commerce is an organic combination of international trade and e-commerce. E-commerce refers to the business activities conducted by using the Internet and modern communication technology, while cross-border e-commerce refers to the international trade activities conducted by enterprises by means of e-commerce. The difference between cross-border e-commerce and traditional e-commerce is mainly manifested in the use of modern network information technology to realize the electronicization of the international trade process.
At present, people refer to e-commerce mainly refers to the trade activities carried out on the computer network, while in a broad sense e-commerce refers to the use of electronic information technology in trade activities.
E-commerce activities first began in the 1970s, mainly in the electronic funds transfer used between banks, which led to the gradual electronicization of financial markets. After the electronic data interchange makes electronic commerce between enterprises possible, but due to the EDI e-commerce technical standards are not uniform, the use of expensive, EDI e-commerce development is limited to a few developed countries and regions and large enterprises.
The emergence of the Internet and the popularity of computers has only made the development of e-commerce in the modern sense a reality. In today’s world, a huge e-commerce market has been formed in the virtual network world.
At present, China’s cross-border e-commerce mainly involves goods, services, exhibitions, tourism, insurance and other aspects. The electronicization of international trade makes enterprises realize the convenient conversion of information flow, capital flow and document flow, and promotes the transformation of traditional business to online business. Cross-border e-commerce started relatively late in China, but due to the vast size of China, large population and huge market potential, cross-border e-commerce has achieved rapid development.
In 2014, the total amount of domestic e-commerce transactions in China reached 13.4 trillion yuan, an increase of 31.37% year-on-year. According to the statistical data of China Electronic Commerce Research Center, the total amount of cross-border e-commerce transactions in China in 2014 was 4.2 trillion yuan, accounting for 16% of the total import and export scale.
2 Qualitative analysis of the impact of cross-border e-commerce on China’s foreign trade
2.1 Impact on international trade subjects
In traditional international trade, due to the complex international market environment, international trade involves more processes, high cost of personnel spending and difficulties in finding trading partners, many small and medium-sized enterprises cannot afford the high costs, and those engaged in international trade are mainly large enterprises. The development of cross-border e-commerce provides a platform for enterprises to find customers, importers can search for suitable trading partners through search engines, industry exhibition networks, registered B2B trade platforms, etc., so as to carry out international trade activities. The emergence of e-commerce platforms provides small and medium-sized enterprises with a broad market platform and rich access to information, making the international trade process easier and the subjects engaged in international trade more diversified.
The emergence of cross-border e-commerce is also conducive to improving the status quo of the industry through the integration of resources to improve the scattered orders, financial constraints and inefficient services of Chinese enterprises in the process of international trade, helping traditional foreign trade enterprises to achieve smooth transformation.
2.2 Impact on the international trade process
In the traditional international trade process, the focus of the importer is mainly on a large number of complicated negotiations, opening letters of credit, preparation of goods, chartering and booking, etc., while in the e-commerce environment, through the computer network and online trading platform, the focus of the enterprise’s international trade is placed on the acquisition and integration of information, business negotiations, electronic bill-making, etc., thus making the focus of the international trade process to achieve a shift . In the process of cross-border e-commerce, it is mainly about online negotiation, electronic documents, payment of goods, etc.
Regarding the contract of sale and purchase of goods or foreign sales contract, it can be concluded through online electronic contract. The contract takes effect when both parties to the transaction reach a consensus and meet other necessary conditions. With regard to the entry into force of the electronic contract, the entry into force of the message contract takes the time when the data message enters the recipient’s receipt system as the time of entry into force. When an electronic contract is signed, it is generally realized by means of digital signature or third-party authoritative certification authority.
2.3 Impact on the transaction cost of enterprises
Through the e-commerce platform for inter-enterprise communication, enterprises can save costs such as transportation, accommodation and personnel time at the early stage of international trade. The introduction of electronic bill-making makes enterprises free from running back and forth between various units and departments, which improves the efficiency of the trade process and reduces the business expenses of enterprises. In traditional trade, enterprises have to spend a lot of money and energy to carry out publicity and rent stores for operation, while in the process of cross-border e-commerce, enterprises can simply use network technology for website production and use virtual stores to carry out publicity, which saves investment costs for enterprises.
3 Quantitative analysis of the impact of cross-border e-commerce on China’s foreign trade
3.1 Descriptive analysis of China’s international trade and cross-border e-commerce
As an emerging trade mode, the development of cross-border e-commerce is closely related to the development of traditional international trade. The changes of China’s total international trade import and export and cross-border e-commerce in the past ten years are shown in the figure below.
Chart of China’s international trade and cross-border e-commerce development
Data source: based on the National Bureau of Statistics, China Electronic Commerce Research Center and Arion.com data comprehensive collation, where the total cross-border e-commerce transactions 2005-2007 annual data is missing, and 2015 annual data is forecast data.
From the above macro overall data, we can see that China’s total import and export, except for the decline in 2009 due to the economic crisis, 2005-2014 are in a continuous upward trend, the growth rate of total import and export in international trade from 2008 to 2012 has changed greatly, after 2012 The growth rate is slow and the foreign trade industry as a whole is in recession. This is both the reason for the decline in demand due to the slowdown in the world economy and the reason for the rise in production costs due to domestic policy adjustments, while the appreciation of the RMB has also caused a certain impact on the development of China’s import and export industry. Under the current situation of rising international trade protectionism and hindered import and export industry, the development of cross-border e-commerce still shows a strong growth momentum, with an annual average growth rate of about 33% from 2008 to 2014, and a continuous increase in the proportion of total import and export, from 4% of the total import and export in 2008 to 16%.
3.2 Linear regression analysis of the impact of cross-border e-commerce on China’s foreign trade
The data for conducting the linear regression are mainly selected from the National Bureau of Statistics and China E-commerce Research Center from 2008-2014, where JCK denotes total import and export and KJDS denotes total cross-border e-commerce. Because the difference in quantity units (trillions of yuan) is small, a linear regression can be conducted directly, and a linear regression model is established as follows.
JCK=C+βKJDS+ui
The parameters are estimated by the parameters, and the results are obtained in the following table.
Through the linear regression analysis, it can be obtained that the regression fit can pass the DW of 1.427145 under the 5% significance test, indicating that there is no autocorrelation in the error term and the model test can be passed. From the regression results, it can be seen that the statistical values of the variables of the model are significant. The regression equation shows that there is a positive relationship between cross-border e-commerce and China’s import and export, and every 1 trillion yuan increase in total cross-border e-commerce can promote 2.877827 trillion yuan increase in total import and export. This indicates that the development of cross-border e-commerce has a great promotion effect on the development of China’s international trade.
4 Summary
In recent years, China’s foreign trade industry has been facing stagnation, in this situation, the development of cross-border e-commerce has shown a booming trend and supported the development of China’s foreign trade, becoming a new growth point for foreign trade. Cross-border e-commerce is the combination of e-commerce and international trade, and this new trade mode also provides a new development mode for enterprises engaged in traditional international trade, and injects new vitality into the development of import and export enterprises.