00:00Zhang Tiwei is the president and chief economist at Pinpoint Asset Management.
00:05This is an important government initiative, and I think there probably will be more specific policy matters to follow.
00:12And I think the e-commerce players, the major players, they are listening to the government's policy guidelines very carefully
00:20nowadays.
00:21And so there will be a particular reaction to those policies down the road.
00:28I think, for instance, one area the government has been saying repeatedly is they want to promote imports to balance
00:36trade with Europe, with U.S.
00:39Now, I think there probably will be particular measures that e-commerce platforms will help to import more from major
00:46trading partners.
00:47So what's it going to mean for international companies who are wanting to enter the Chinese market?
00:56Yeah, I think this is, I think, on the margin also positive for the international players.
01:02I think the global large manufacturers, I think they already have pretty good market access in China.
01:10What's important, I think, going forward is China probably provide better market access to even relatively smaller players, medium-sized
01:20enterprises, and broaden the scope of imports.
01:24I think on that front, the e-commerce platforms can probably do a lot more.
01:29OK, we've talked about the Chinese players, we've talked about international contenders.
01:35What about shoppers, the consumers, you and me?
01:38Because there are still some things holding shoppers back, aren't there, from e-commerce.
01:43How do these guidelines foster trust amongst consumers?
01:48Yeah, I think on both fronts, from a European consumer's perspective, I think, you know, this kind of guideline would
01:55help to enhance the credibility of the Chinese exports,
02:01particularly of, you know, small, medium-sized enterprises selling from China to European consumers,
02:08to ensure that the quality and safety of these products can be regulated, can be examined carefully.
02:18And so on that front, I think this is one step forward.
02:22And then the other side of it is the imports from Europe to China.
02:28I think that front, I think there's a lot can be done.
02:30I think the Chinese consumers probably have not that much.
02:35I think the market access issue is definitely holding some of the Chinese consumers back,
02:43particularly for, again, medium and small-sized enterprises exporting from Europe to China.
02:50So hopefully down the road there will be specific measures that are helping those European exports to increase their market
02:58share in China.
02:59And what trends do you see emerging in the e-commerce sector as a result of these changes?
03:07Yeah, I think at this stage, we're still at the early stage, right?
03:10So I think the government is taking a step to address, you know, some concerns from major trading partners, including
03:21Europe.
03:22There are, you know, concerns from other major markets as well, U.S. and some developing countries.
03:29So I think e-commerce companies will probably think about what they can do to help to address those concerns,
03:37including balancing trade, including, you know, the quality control of the products that sold on their platforms,
03:47particularly to those developing economies, particularly to those developing economies, that with probably higher standard.
03:52So this is, I think, it's still kind of an initial stage of them taking initiatives, particularly on the import
03:59side, I would say.
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