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Changes in Chinese policy of overseas online shopping purchase and measures

Author Kim, Sukkyung Date 2017.01.31 Issue No 5
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The Chinese market of overseas online shopping purchase is rapidly growing, and the preference of Chinese consumers for Korean products are big, putting higher importance on Chinese market for Korean businesses’ e-commerce B2C exports in the future.

The Chinese government followed through on favorable policies for the overseas purchase online shopping in order to eradicate exports black markets, but in 2016 regulations on the overseas online shopping purchase were strengthened including tax reforms and customs regulations, etc.

The Impact of Chinese tax reforms regarding overseas online shopping purchase on Korean businesses’ ecommerce B2C exports is ambivalent depending on items, prices, and tax rates, etc.

For example, food and beverage will have an increased tax due to tax reforms, while Korea’s best B2C exports, cosmetics, will have a decreased tax with item prices above certain levels (100 RMB).

In fact, China’s tax reforms made no much difference as Korean B2C year-on-year export revenue recorded more than a 100 % increase after the reforms.

To expand B2C exports to China, it is necessary to improve logistics systems and achieve product certification.

●In order for Chinese consumers to directly purchase products from Korea’s domestic online shopping mall, a reduction of international shipping cost and delivery period is crucial. This makes it important to seek ways to establish International e-Commerce Joint Logistics Center in Korea.

●Quality enhancement of products and certification achievement will be the most foundational measures to expand exports to China through strengthened competitiveness, because Chinese consumers consider that a quality of products matters the most, and the Chinese government strives to apply rules of an import license rigorously.