Changes in overseas policies
1. The European Union launched the first investigation into China's medical equipment procurement
According to the news, the EU plans to use the International Procurement Tool (IPI) to investigate China's medical device procurement, which came into effect in June 2022 and aims to solve the imbalance with non-EU countries in the field of government procurement. The survey will be the first of its kind since the IPI was implemented.
It is understood that from the perspective of product and service procurement, IPI investigations will only involve a single contract with a value of more than 5 million euros, and from the perspective of engineering and concession procurement, the investigation will only involve a single contract with a value of more than 15 million euros.
2. The EU DSA may supervise the cross-border e-commerce platform Temu
Under the EU's Digital Services Act (DSA), companies with more than 45 million users will be considered very large online platforms (VLOPs) that require additional measures to combat the spread of illegal content and counterfeit products, as well as manage risks to public safety, with companies that violate the rules potentially facing fines of up to 6% of their global revenue, and serious violators may even be banned from operating in the EU.
According to the latest data, Temu entered the EU market in April last year, and in the six months to the end of March this year, its average monthly active users have reached 75 million, and it has entered the scope of DSA supervision. The European Commission has started initial contacts with Temu on this bill. Previously, Shein, another cross-border e-commerce giant, has communicated with the European Commission.
3. The UK initiated a transitional review of the anti-dumping and countervailing measures against China's organic coated sheets
The UK Trade Remedies Agency issued an announcement on April 15 to conduct a transitional review of the anti-dumping and countervailing measures against certain organic coated steel products originating in China, in order to determine whether the above-mentioned measures originating from the EU will continue to be implemented in the UK and whether to adjust the tariff level.
The dumping and subsidy investigation period is from April 1, 2023 to March 31, 2024, and the injury investigation period is from April 1, 2020 to March 31, 2024.
4. The United States launched a Section 301 investigation into China's shipbuilding, logistics, and maritime industries
On April 17, the U.S. Trade Representative (USTR) announced its decision to initiate an investigation into China's acts, policies, and practices in key maritime, logistics, and shipbuilding sectors under Section 301 of the U.S. Trade Act, after reviewing the petitions of five national unions.
This is the first time since the Biden administration took office in 2021 that a Section 301 investigation has been taken into a specific industry in China. USTR said it is seeking public comment and will hold a public hearing on the investigation on May 29.
5. The U.S. House of Representatives passed another TikTok divestment bill to extend the sale period to one year
Following the passage of the H.R.7521 bill last month, the U.S. House of Representatives passed the new H.R.8038 bill again with 360 votes in favor and 58 votes against on the afternoon of the 20th local time, including the unreasonable demand to force ByteDance to divest TikTok in the United States or face a ban.
Part D of the so-called "Peace by Force for the 21st Century Act" includes measures similar to those passed last month to "protect Americans from foreign adversary-controlled apps." However, the deadline for the new law to divest TikTok has been adjusted from 165 days after it takes effect to 270 days, that is, after the US presidential election in November this year.
The President may also exercise a 90-day extension if he determines that the sale is progressing. This has extended the maximum period for ByteDance to sell TikTok to about a year.
6. The Philippines extends the e-marketplace compliance transition period to July 14, 2024
The Internal Revenue Service (BIR) today (April 15, 2024) issued Revenue Memorandum Notice No. 55-2024, providing an important grace period for e-marketplace operators and sellers to comply with the Revenue Memorandum. This latest announcement is intended to make adjustments to the transition period previously in the Revenue Memorandum Notice No. 8-2024.
The timeline for e-commerce practitioners to adapt to and comply with the relevant provisions of BIR Income Regulation No. 16-2023 has been further extended to allow an additional 90-day extension for e-marketplace operators and sellers, which has now been extended to 14 July 2024, providing a more relaxed grace period for businesses to ensure full compliance.
7. Turkey made a final ruling on the anti-dumping sunset review of China's plywood
On April 18, the Turkish Ministry of Trade issued Announcement No. 2024/10, making an affirmative final ruling on the third sunset review of anti-dumping plywood originating in China, and decided to maintain the anti-dumping duty determined by Announcement No. 2018/18 of May 22, 2018, and continue to impose an anti-dumping duty of 140 US dollars/cubic meter on the products involved.
The measures will take effect from the date of publication of the announcement and will be valid for five years.
Emerging market dynamics
1. GMV of e-commerce in the Middle East and North Africa will increase by 13% during Ramadan in 2024
According to the latest research by Admitad Dubai, the Middle East and North Africa region saw a significant increase in e-commerce transaction volume during Ramadan 2024, with a year-on-year increase of 23% and a 13% increase in gross merchandise transaction value (GMV). During this period, the average purchase value rose from $32.5 to $41 during non-holiday periods.
In the merchandise category, Home & Garden led the way with 18% sales growth, followed by Consumer Electronics and Telephone & Telecommunications with 12.6% and 8% growth, respectively. Especially in the UAE and Saudi Arabia, the average spend per transaction is as high as $100 and $85, respectively.
2. Dubai vigorously promotes the expansion of the network of electric vehicle charging stations
The Dubai Water and Water Authority (DEWA) announced plans to expand EV charging infrastructure at the World Future Energy Summit. The plan includes the addition of 390 different types of green fast and ultra-fast charging stations in Dubai to support the growth of electric vehicles in the region. It is understood that by the end of 2025, Dubai plans to build 1,000 electric vehicle charging stations, including more ultra-high-speed charging piles.
3. Microsoft invested in the Middle East AI giant G42 and asked it to withdraw from the Chinese market
U.S. tech giant Microsoft plans to invest $1.5 billion in G42, an artificial intelligence company based in the UAE, in a move aimed at strengthening ties with the UAE and reducing China's influence in the Middle East. As part of the deal, the G42 agreed to suspend all business dealings with China, including the removal of Huawei equipment and technology.
The investment is seen as a global U.S. counter to China's technological expansion. The U.S. government has expressed strong support for the deal, and the G42 has been influenced by the U.S. government during the negotiation process, after the G42 was scrutinized by the U.S. for its cooperation with China and could face sanctions.
Microsoft's decision not only affects the economic and political relations between China and the United States, but may also lead to a major adjustment of the global economic structure. In this regard, China opposes the politicization, security and weaponization of economic and trade issues, and stresses its determination to protect its own economic security and maintain the global economic order.
Platform dynamics at a glance
1. Amazon's clothing commission ratio is reduced to 5%-10%
Amazon recently announced that it will reduce the commission rate for clothing products to a range of 5%-10% in Europe, Japan and Canada, following the US site. The changes are focused on apparel products priced below $20. In addition, eligible low-price FBA products will receive lower FBA rates.
Starting from 15 May 2024, the commission rate will be adjusted for the following sites: 15.3% to 8.16% for items under £15 in the UK, 15% to 8% for items under €15 in Germany, the Netherlands and Belgium, and 15.45% to 8.24% for items under €15 in France, Italy and Spain;
Commissions for items priced below SEK 175 in Sweden have been reduced from 15% to 8%, for items priced under PLN 65 in Poland from 10% to 8%, for items priced below JPN 2,500 in Japan from 12% to 8%, and for items priced below CAD 20 in Canada from 17% to 10%.
2. AliExpress opened the first southwest cross-border warehouse in Chengdu to promote the rapid growth of semi-custodial services
AliExpress and Cainiao cooperated to announce that the Chengdu origin warehouse, which was put into use on April 16, is the first official warehouse set up by AliExpress in the southwest region. The move aims to alleviate the stocking pressure of cross-border merchants in the southwest region, so that more merchants can join AliExpress's semi-managed service and reap the benefits of traffic growth.
This strategic layout provides cross-border merchants in the southwest region with convenient local stocking options, and realizes fast logistics services from morning delivery to afternoon delivery. AliExpress and Cainiao will be responsible for the follow-up management of the warehouse, including inventory management, allocation, delivery and fulfillment operations, to ensure seamless connection with the "global 5-day delivery" logistics service provided by AliExpress.
3. TikTok Notes is available in Canada and Australia
According to reports, TikTok has piloted TikTok Notes, an ins-like app in some markets. The app is currently available on Google Play and the Apple App Store in Canada and Australia, but is not yet available in the United States. Presumably, the app is currently in beta before its global rollout.
According to TikTok, the app is currently in its early stages, allowing users to post pictures and texts on TikTok Notes and share snapshots of their lives. It is reported that TikTok users can directly link their accounts to TikTok Notes.
4. Temu set up a warehouse in the United States to speed up local delivery
As Temu continues to grow in the U.S. market, the company has set up new warehouses in the U.S. for sellers who already have inventory in Europe, the U.S. and beyond. This initiative aims to provide faster local delivery speeds to better meet consumer demand. With the addition of a U.S. warehouse, Temu is working to increase inventory to further speed up deliveries and optimize the customer shopping experience.
5. Amazon updates its compliance policies for dietary supplements and medical devices
Amazon US and Canada recently released new compliance requirements for sellers of dietary supplements and medical device products. The U.S. Food and Drug Administration (FDA) will continue to strictly regulate dietary supplement products in accordance with the Federal Food, Drug, and Cosmetic Act and its amendments, including manufacturing, packaging, storage, and labeling processes. Sellers are required to provide NSF/ANSI 173 certification or NSF 229 certification, which is renewed annually, to prove that the product meets the required quality standards.
For medical devices, Health Canada requires all categories of medical devices to meet the standard, and sellers have until May 22, 2024 to submit compliance documents and successfully pass the audit. In particular, Class III and IV medical devices and their accessories are generally prohibited from sale unless there are special circumstances.
Popular Industry Observations
1. The "female red" boom in Europe and the United States promotes new business opportunities for DIY products
In recent years, consumers in Europe and the United States have become increasingly interested in traditional handicrafts, commonly known as "women's reds", especially in areas such as DIY activities such as knitting, sewing and cross-stitch, which has driven the demand for related handicraft products on eBay.
The hot sales of DIY products to the sea show three main trends: first, with the increase in travel demand, the demand for ironing equipment by European and American consumers has surged, especially the hand-held iron with high quality, low price and easy to carry and portable; second, portable sewing machines are popular because they are small and convenient and suitable for use when traveling, while high-performance CNC sewing machines are selling well because they meet the needs of consumers for personalized and creative production; third, hand-knitting and tufting production have become popular trends because of their creativity and entertainment.
2、Sensor Tower：《Last War:Survival Game》首次荣膺出海手游收入榜冠军
According to the latest data from Sensor Tower, the top overseas game in March was the 4X strategy mobile game "Last War: Survival Game", which integrates casual gameplay, and its in-app purchase revenue increased by 40% again in March, exceeding $100 million, a record high.
It is understood that the game has attracted new users by placing a large number of casual gameplay advertising materials, and continues to update SLG gameplay to maintain the core player base, with a cumulative revenue of more than 240 million US dollars in the past six months, of which the South Korean and American markets contributed about 30% of the total revenue.
At the same time, Diandian Interactive's "Whiteout Survival" continued to maintain stable content updates, launching a series of activities such as "Anniversary Celebration", "Lantern of Blessings", "Lucky Rainbow Pack" and "Easter", and the purchase revenue during the period increased by 9% quarter-on-quarter, ranking second in the revenue list.
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