By Hasan Muhammad

 

 

Over the first two months of 2025, Chinese e-commerce continued its positive trend, which shows that the country is paying much attention to the development of the digital economy and consumer engagement. According to the official data, the online retail sales of physical products grew by 5% year-on-year  in the first two months of 2024 while the total retail sales of consumer products and services grew  by 4%. This positive trend can be attributed to the China's significant investment in artificial intelligence (AI). 

 

All this is done by major technology companies, which have started to integrate AI into their business strategies. For example, Meituan has also made huge investments towards the development of AI by injecting billions of dollars into the development of chips that enhance their AI capabilities. Like Alibaba, the company has also rerouted its focus on AI, which has made it to build some of the best language models such as Qwen and form partnership with other global tech companies. These advancements have not only enhanced the supply chain management processes but also the customer experience through the  provision of suggestions and better customer support.

 

The government’s trade-in of consumer goods has also helped to boost e-commerce. This has guided consumers to upgrade and replace their products and has therefore created demand across the various product categories. Notably, humanoid robots and other intelligent devices have emerged as new highlights in digital consumption, reflecting a growing consumer appetite for cutting-edge technology products.  

 

The expansion of visa free policies has also contributed to this growth story. These policies have revived the tourism industry and thereby registered a high growth rate of 35.9% in the online tourist service sales as compared to the previous year. This increase is evidence of the link between e-commerce and tourism because more movement results in more online bookings, lodging, and other related services.

 

There is a clear evidence of China’s commitment to collaborate with other countries in e-commerce through the Silk Road e-commerce cooperation framework. This framework has enabled a large number of international products to be available and sold on Chinese e-commerce platforms. For instance, the sales of passion fruit from Colombia and wine from Serbia have increased by 355.5% and 215.8% respectively compared to the previous year. Such figures show that China is a major trade power that can easily bring in products from other countries and offer them to its consumers. 

 

Investment trends also show the dynamics of the sector. In the first two months of 2025, investment in information services grew by 66.4%, while e-commerce services investment grew by 31.9%. These investments reflect a robust confidence in the sector's potential and a commitment to advancing technological infrastructure to support its growth.

 

The use of smartphones has been increasing and has been a key driver in  the growth of e-commerce in China. More than 60% of online shoppers in China use their smartphones for purchasing products, and this has created mobile commerce that has become an essential component of e-commerce. This mobile-first strategy has required platforms to design user interfaces to fit the mobile interface in order to provide a good shopping experience to mobile users. The e-commerce industry has continued to receive government support to expand. 

 

For instance, the BRI has facilitated the cross-border e-commerce while the regulations on rural e-commerce have brought millions of new digital consumers into the market. These policies not only increase the size of the consumer market but also promote the variation in products and services offered online. These factors combined with the above factors and others will continue to sustain the growth of China’s e-commerce sector in the next few years.