To implement the decisions and deployments of the CPC Central Committee and the State Council, promote the stable growth of foreign trade, and consolidate and enhance the momentum of economic recovery, the Ministry of Commerce recently announced the “Several Policy Measures on Promoting the Stable Growth of Foreign and Trade,” with the approval of the State Council.
The “Policy Measures” propose nine measures to further promote the stable growth of foreign trade, including expanding the scale and coverage of export credit insurance, increasing financing support for foreign trade enterprises, optimizing cross-border trade settlement, promoting the development of cross-border e-commerce, expanding the export of commodities such as characteristic agricultural products, and attracting and facilitating the cross-border movement of business personnel.
Among these, promoting the development of cross-border e-commerce and expanding the export of commodities such as characteristic agricultural products are particularly beneficial for China’s tea product exports.
In terms of expanding the export of commodities such as characteristic agricultural products, it is necessary to expand the export of advantageous characteristic agricultural products, increase support and promotion efforts, and cultivate high-quality development entities.
According to reporters from China Cooperation Times · Tea Weekly, as a characteristic Chinese agricultural product, China’s tea exports from January to September this year totaled US$1.026 billion, a year-on-year decrease of 21.39%; the export volume was 267,700 tons, a year-on-year decrease of 0.72%. Looking at China’s tea export market over the past three years, while the total volume of tea exports has not changed significantly, the decline in average price per unit has been substantial: the average export price of Chinese tea was US$5.55/kg in 2022, US$4.73/kg in 2023, and dropped to below US$4/kg from January to September this year.
Currently, due to the continuous rise in global tea planting area and production, coupled with a significant decline in international trade volume leading to shrinking consumption, although the global tea production and sales pattern remains basically stable, international tea market conditions have not yet improved; globally, tea production still shows an excess of supply over demand. Against the the backdrop of weak demand in the international market, the introduction of these “Measures” will present an opportunity for the export of China’s agricultural products, especially tea.
In terms of promoting the development of cross-border e-commerce, the construction of overseas smart logistics platforms should be continuously advanced.
The tea industry holds vast opportunities in cross-border e-commerce. With the rise of global health awareness, international consumers’ pursuit of a healthy lifestyle is becoming increasingly intense; as a natural beverage, tea aligns with these healthy consumption trends. Chinese tea possesses cultural advantages—Chinese tea culture is profound and possesses unique charm, capable of meeting overseas consumers’ dual needs for exotic culture and healthy beverages. With the support of e-commerce platforms, many cross-border e-commerce platforms have included tea in their key recruitment categories, providing traffic support and logistics assistance. The profit margin for tea is considerable; high-quality tea offers significant profit potential, bringing substantial returns to enterprises. Additionally, the rise of young consumer groups—who possess a strong curiosity for novelties and personalized products, particularly the innovation of various tea blends—provides new growth points for cross-border e-commerce sales of tea.
In response to the launch of these “Policy Measures,” reporters from China Cooperation Times · Tea Weekly interviewed Cai Jun, Vice Chairman of the China Tea Society, who has been engaged in tea foreign trade for 27 years. He conducted an analytical review of the overall situation of China’s tea foreign trade and identified such an industry phenomenon: in the international market, Chinese tea is more about selling resources without brand premium; there are no brands, only culture and history; there is a lack of large enterprises, with small, scattered, and weak entities still being the main players; there is volume but no status; and there is no voice, often merely providing the groundwork for others’ success.
Although some short-term, difficult-to-resolve problems still exist for Chinese tea in the international market, it is heartening that over the past 20 years, and especially in the last decade, the development achievements of Chinese tea have boosted confidence in its global trade layout. The steady advancement of the “Belt and Road” initiative and the implementation of the important concept of the coordinated development of “Three Teas” have laid a solid economic and cultural foundation for Chinese tea to enter broader markets; the industrialization of tea has accelerated, with capacities for scale, standardization, automation, and intelligence greatly improved, and R&D, deep processing, and product design capabilities are incomparable to the past; the widespread realization of park-style plantations and garden-scale factories—where tea gardens become parks and tea regions become scenic spots—has brought green development and the integration of primary, secondary, and tertiary industries to a new level, with quality and safety levels remaining steadily high; simultaneously, the national image has been greatly enhanced, bringing more market support and cultural empowerment for Chinese tea brands to go international.
Produced by: China Cooperation Times · Tea Weekly All-Media
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Author: Lam Sam (LamSam), the Old Tea Head
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