Digital Transformation of Global

Marketplace: Implications for Digital

Trade

Professor Wang Jian

University of International Business and Economics (UIBE)
Vice chairman, Alibaba Research Academic Committee
Chairman of Expert Committee, APEC E-commerce Business Alliance
Chairman, Academic committee, Alibaba Global eCommerce Talent Network
Changes in Economic Development
The 2nd Information Revolution
Coming Digital Revolution 2.0
The 2nd DT Revolution: Digital Economy 2.0
USA, China
Cloud computing, Big data
The 1st IT Revolution: Digital Economy 1.0
USA
Computers，information
The 2nd Industrial Revolution: Energy
USA
Electricity
The 1st Industrial Revolution: Power
England
Steam Engine
The Logic Behind the Digital
Transformation and Market Changes
Sudden change to the ecosystems

Innovation in business models and operations

New market structure and business rules

The Impact of Digital Transformation on
Global Marketplace and Business
Paradigm Shift: Industrial Economy vs. Digital Economy

Industrial Economy Digital Economy

• B2C • C2B
• Standardization • Customization
• Mass Production • Differentiation
• Low Cost VS • Value
• Assembly Line • Network
• Supply Chain • Social Collaboration
• Hierarchy • Self-Organizing
Linear • Mechanical • Control Non-linear • Ecological • Enable
What if we can make
globalization work by
making it inclusive for
anyone with a mobile
phone to solve job creation
in the next 20 years.
 Alibaba Ecosystem
DIGITAL MEDIA & ENTERTAINMENT CORE COMMERCE LOCAL SERVICES

DATA- DATA-
DRIVEN REFUEL

SERVED BY PAYMENTS, FINANCIAL SERVICES, LOGISTICS, ADVERTISING, DATA MANAGEMENT & CLOUD COMPUTING

PAYMENT & FINANCIAL SERVICES

LOGISTICS

ADVERTISING
DATA MANAGEMENT PLATFORM

CLOUD COMPUTING

New Paradigm: NOT how we CUT the pie, but how we ENLARGE the pie
 Cross boder EC Eco-sytem and
Market Structure
Extended Cross-border E-commerce Concept:
Transformation of International Trade Process

Before Transaction Transaction After Transaction

- Potential buyers and - Potential buyers and -Import and export process
sellers sellers management
- Information - Information exchanges - Documents preparation
exchanges - Trade leads - Documents exchange
- Trade leads - Business opportunities - Payment integration
- Business - Matching buyers and - Logistics integration
opportunities sellers - Banking
- Matching buyers and - Transactions - Foreign exchange
sellers - Payment - Customs and other
- Logistics integration government authorities
 Cross border EC Platform

Immerging Third Party Platform in China to facilitate Trade

Before Transaction Transaction After Transaction

(Information exchange) (Cross border B2C) (Paperless trading
and integrated
service)
- Alibaba.com -Aliexpress.com
- MadeinChina.com (Alibaba) - Onetouch.cn (taken
- Globalmarket.com -DHgate.com over by Alibaba)
- Trade2cn.com
-Ebay.cn - Shi Mao Tong (Ningbo)
Cross-border E-commerce Benifits
and Inclusive Trade for SMEs

• Maching buyers and sellers

• Increase the availibility and choices of consumer
products
• Easy and convenient for business and
consumers
• Increase the market efficiencies
• Reduce the transaction cost
• Facilitate International trade and help the SME to
participate in global trade
Implications for Inclusive Trade Policy and Regulation
▪ How can we make sure that
▪ Cross-border e-commerce is based on a secured, trusted global
environment?
- accessibility, traceability, privacy, platform governance (Cross-border
Certification)
▪ Cross-border e-commerce is based on a well-regulated efficient and
harmonized system?
-stability, predictability, consistency (PPP)
▪ Cross-border e-commerce is not imposed with extra cost?
-customs duties and tax, adminstrative cost (De Minimis Threshold)
▪ Cross-broder e-commerce can be done within the appropriate legal
environment?
-consumer protection, non-discrimination, co-operation and mutual respect
(Cross-border data flow)
Inclusive Trade: Reduced barrier of entry and easier access to
global trade by MSME and consumers
 Enabling global
GLOBAL partners

E-COMMERCE Developing
TALENT e-commerce talent

Network Transforming into

“Smart” SMEs
The founding member universities:
China - UIBE, NPU, SHU, HIT, YWICC Thailand - UTCC, BUU
Malaysia – INTI, UTAR, UiTM Kazakhstan - KIMEP
 PROGRAM AIMS
The GET Program aims to train individuals so they can apply the practical knowledge
at their current place of employment or in entrepreneurial opportunities. Broadly
speaking, the aim of the GET Program is to promote eCommerce and macroeconomic growth in a
participant’s home country by the principles that have yielded in the transformation of China’s
digital economy

Students SMEs Public sector professionals

• Have an understanding of eCommerce • to transform, develop and expand their • to formulate appropriate policies and
business operations and the digital business in the digital economy regulations for digital ecosystems
economy worldwide.

• Gain skills to become an entrepreneur

on eCommerce platforms
Thanks
• Wang Jian
• Prof. @ University of International Business and Economics
• Beijing China

• wangjian@uibe.edu.cn
• WeChat: bramking