The “One Belt, One Road” initiative promotes financing channels and market opportunities for the development of cross-border e-commerce

1. Overview of financing channels

Under the “One Belt, One Road” initiative, the diversification of financing channels has provided strong support for projects and cross-border e-commerce. The following are the major financing institutions:

1. Asian Infrastructure Investment Bank (AIIB)
   AIIB is the first multilateral financial institution established by China’s initiative, focusing on regional infrastructure construction and economic integration. As of October 2021, it has 104 formal members with a statutory capital of US$100 billion, and China’s investment is 50 billion Dollar.

2. Silk Road Fund
   The fund is jointly funded by a number of state-owned financial institutions and aims to support investment opportunities and investment and financing services in the “Belt and Road” process. It was established in 2014.

3. Export-Import Bank of China
   As a policy bank, it focuses on supporting foreign trade and international economic cooperation, providing a variety of financing services, such as short-term, medium-term and long-term loans, to support “Belt and Road” related projects.

2. Cross-border e-commerce cooperation countries and market potential

China’s market opening has provided new economic growth opportunities for countries along the Belt and Road Initiative. In 2018, products with outstanding export performance in the Chinese market from South Korea, Italy, Singapore and other countries have experienced a jump in sales, especially in consumer categories such as food, beauty, and kitchenware.

• Outstanding achievements: Products such as jadeite and furniture from Myanmar, and fresh produce from Chile are hot-selling in the Chinese market, with consumption increasing significantly compared with 2016.
• E-commerce sales: According to data, in 2019, 21 brands from countries along the “Belt and Road” entered the Chinese market through e-commerce platforms, and then accelerated the industrial development of the countries along the “Belt and Road” The expansion shows strong market potential.

3. “One Belt, One Road” and opportunities for cross-border e-commerce

The “Belt and Road” initiative not only promotes infrastructure construction, but also provides historical opportunities for the cross-border e-commerce industry. For example:

• Policy advantages: Through policy communication, infrastructure connectivity and smooth trade, cross-border e-commerce can better adapt to the markets of different countries.
• Increased investment: The localization and overseas warehouse operation model of e-commerce companies promote close investment and trade cooperation between cross-border e-commerce and participating countries.

4. Cultural exchange and brand building

The “Belt and Road” initiative emphasizes cultural exchanges, and e-commerce platforms play an increasingly prominent role in brand building:

• Improving brand awareness: Export e-commerce companies can use the “Belt and Road” platform to enhance the visibility of their own brands in target markets, thereby achieving more effective market penetration.
• Enhance understanding through cultural cooperation: Export e-commerce companies can better grasp market demand and consumption habits, and improve the local adaptability of products and services.

5. Challenges faced and coping strategies

Despite the numerous opportunities, export e-commerce still faces many challenges in the process of integrating with the “One Belt, One Road” initiative:

1. Laws, regulations and compliance requirements: The differences in laws across countries require e-commerce sellers to have an in-depth understanding of the policies and regulations of each target market.

2. Cultural differences and language barriers: Multilingual customer service and localized marketing strategies need to be built to improve consumer experience.

3. Cross-border logistics and supply chain management: Effectively establishing relationships with logistics partners to improve efficiency and reliability is also the key to future development.

6. Conclusion

The “One Belt, One Road” initiative provides abundant opportunities and channels for the development of cross-border e-commerce. E-commerce sellers should seize this historical opportunity and achieve mutual benefit and win-win results through policy support, market expansion and cultural exchanges. Actively adjusting strategies to cope with the challenges we face will pave a broader path for the future development of cross-border e-commerce.