Editor's note: Cross-border e-commerce is becoming an important driver of China's trade growth. Haiwainet.cn spoke to Li Mingtao, chief e-commerce analyst at the China International Electronic Commerce Center, on where the sector stands today and its future development. Below are excerpts of the interview. The views don't necessarily represent those of China Daily.

The Chinese cross-border e-commerce sector's reliance on traditional markets in Europe and the United States has gradually given way to a more diversified presence across emerging regions such as Southeast Asia, the Middle East and the Latin America, strengthening its risk resilience.

Product offerings are also upgrading. Exports are expanding from traditional light industrial goods to higher value-added products including smart home appliances, consumer electronics, outdoor leisure equipment and health-related home products. Branding and differentiated competition are becoming increasingly prominent.

At the same time, diversified business models including cross-border livestreaming, social commerce and independent websites are developing in parallel. New approaches such as the integration of e-commerce platforms with industrial clusters and the "small order, quick response" model are gaining traction, boosting operational efficiency and supply flexibility.

Moreover, supporting capabilities in overseas warehousing, international logistics, cross-border payment systems and digital operations have also improved, accelerating the transition from channel-based trade to full-chain digital trade.

The space for low-cost, extensive competition has narrowed, while enterprises with strong supply chain management, digital capabilities and compliance awareness have gained a clear competitive edge.

Cross-border e-commerce is a major component of digital trade and plays an irreplaceable role in stabilizing the country's foreign trade, promoting industrial transformation, boosting employment and exploring new markets.

On the import side, China is leveraging its position as the world's largest online retail market to introduce more high-quality products from overseas, better meeting domestic consumers' demand for diversified and premium goods. This has also fostered deeper integration between global supply chains and the Chinese market.

On the export side, the ability of cross-border e-commerce platforms to identify global consumer trends, combined with the upgrading of Chinese manufacturing, has strengthened supply chain efficiency, service quality and digital capabilities, thereby enhancing the competitiveness of Chinese products.

The application of artificial intelligence has improved operational efficiency, creating new forms of consumption and supporting enterprises in expanding into emerging markets. By leveraging data and technology, companies are accelerating product and brand upgrades, moving toward higher value-added segments and cultivating new drivers of growth.

However, the cross-border e-commerce industry still faces challenges. International compliance pressures are rising, with some countries tightening regulations related to platforms, merchants, data protection, taxation and consumer rights.

The iteration of AI-powered shopping applications abroad may disrupt existing data traffic models and operational systems. Meanwhile, global consumers are demanding higher standards in logistics efficiency, after-sales service and localized support.

Looking ahead, three major trends are likely to shape the development of cross-border e-commerce. First, market diversification will deepen, as enterprises consolidate their presence in developed markets while accelerating expansion into emerging economies to build multiregional, coordinated global networks. Second, cross-border e-commerce will evolve from exporting products to exporting business models, services and supply chains. The logistics, warehousing and supply chain networks will be further improved, strengthening overseas localization and service capability. Third, the sector will further empower the upgrading of Chinese manufacturing.