E-commerce Transaction Value to Hit 40 Trillion Yuan in 2020

(Beijing) — China is aiming for its flourishing e-commerce sector — a new pillar for driving consumption, trade and employment — to grow at 12% annually through 2020, according to the country’s latest five-year plan.

China’s e-commerce market, the largest in the world, is expected to double in the next four years to 40 trillion yuan ($5.75 trillion) a year with online retail doubling to 10 trillion yuan a year.

The sector will provide more than 50 million jobs by the end of 2020, according to the nation’s 13th Five-Year Plan (2016-2020), published by the Ministry of Commerce.

Policymakers have underlined cross-border pilot programs, a fusion of social networking and online shopping, bringing farm produce online and incorporating virtual reality and augmented reality technology into the shopping experience in the detailed plans for e-commerce.

The sector will play an important role in achieving the aims set out in the 13th Five-Year Plan, which prioritizes abandoning heavy industry and boosting China’s technological edge.

There are now 27 million people working in e-commerce, a market worth 22 trillion yuan. One out of every 10 yuan in retail this year was spent by consumers online. E-commerce has also given rise to a roaring delivery sector, with more than 30 billion parcels sent this year.

Draft laws that will better govern the sector are being reviewed, and may be rolled out late next year.

Contact reporter April Ma (fangjingma@caixin.com)