Chongqing - AliExpress, Alibaba Group's largest cross-border e-commerce platform in China, recently set up operations in Western (Chongqing) Science City to establish the Sichuan-Chongqing AliExpress Cross-Border E-Commerce Industrial Park.
Shifting the industrial chain
The year 2023 was dubbed the inaugural year for the "Four Little Dragons" of Chinese cross-border e-commerce: AliExpress, Temu, SHEIN, and TikTok Shopee. Customs data shows China's cross-border e-commerce trade reached 2.38 trillion yuan in 2023, up 15.6%. Exports were 1.82 trillion yuan, a 19.6% increase, while imports were 548.3 billion yuan, up 3.9%, according to Caixin.
AliExpress chose Chongqing for its superior logistics infrastructure. In a recent exclusive interview with Bridging News, Liao Honghai, President of the China (Chongqing) Cross-border E-commerce Association, highlighted Xiyong's Tuanjie Village as a key starting point for the China-Europe Railway Express, enhancing transportation efficiency. AliExpress centralizes goods in Xiyong for optimized distribution.
Liao Honghai, President of the China (Chongqing) Cross-border E-commerce Association. (Photo/Liao Honghai)
The shift of the cross-border e-commerce industrial chain to central and western regions significantly boosts Chongqing's development. Liao pointed out, "The range of products sold via cross-border e-commerce has expanded from traditional consumer goods like clothing, footwear, and small appliances to high-value products such as NEVs and general machinery."
The platform collaborates closely with the supply chain, driving rapid growth in domestic cross-border e-commerce. Notably, Amazon's only industrial cluster in western China is in Chongqing, handling the production and sale of large items like cars and motorcycles, highlighting the trend of industrial chain transfer.
The China-Singapore (Chongqing) International Aviation Logistics Industry Demonstration Base, located at the Lianglu-Cuntan Free Trade Port Area in Yubei District, has attracted major logistics enterprises like SF Express, enhancing the area's logistics capabilities.
Liao highlighted the convenience of logistics, noting that the construction of the New International Land-Sea Trade Corridor (ILSTC) has greatly improved efficiency.
"The cost of rail transportation is now lower than sea freight, with higher efficiency. This gives the central and western regions a competitive edge in the development of cross-border e-commerce," Liao illustrated. Currently, Chongqing’s cross-border e-commerce growth rate has reached double digits, significantly higher than the national average.
Rich and stable talent pool
Chongqing's advantage is its rich talent pool. Coastal areas face a shortage of cross-border e-commerce talent and frequent turnover, while the central and western regions, with more universities, offer a stable talent pool. As a result, e-commerce companies are moving human resource-intensive departments to these regions.
Liao further mentioned, "We have collaborated with Sichuan International Studies University to establish a multilingual cross-border e-commerce research institute dedicated to cultivating high-quality cross-border e-commerce talent." Currently, all 23 universities in Chongqing offer e-commerce programs, supplying many professionals to the industry.
Alibaba Group’s strategic partnership with the Chongqing government supports the establishment of AliExpress and the cross-border payment platform, WorldFirst, in Chongqing. Western (Chongqing) Science City has attracted global e-commerce giants like eBay, Google, Taobao, Tmall, and AliExpress, forming an industrial cluster and attracting thousands of e-commerce sellers.
Chongqing's cross-border e-commerce future looks promising. Liao emphasized that, with increasing domestic competition, companies must expand internationally through cross-border e-commerce. Government support makes it a key aspect of trade digitalization and a new form of foreign trade.
In the future, Chongqing's cross-border e-commerce will continue to rely on its comprehensive logistics system, rich talent resources, and complete industrial chain, continuously driving local companies to expand overseas and secure a place in the global market.