May 19, 2017
Oliver Wyman partner Wai-Chan Chan was quoted in a Bloomberg story titled “A $60 Billion E-Commerce Loophole in China May Be Narrowing.”
Known as cross-border e-commerce, the booming backdoor avenue allows Chinese consumers to buy overseas-manufactured goods online and effectively circumvent the regulatory issues that have stymied access to a variety of consumer products. Faced with pressure from conventional retailers at home, and the loss of tax revenue, the government is now looking at overhauling the legal loophole.
“If you do not harmonize the rules for commercial imports and cross-border e-commerce, there is an advantage you give to companies overseas,” said Wai-Chan Chan, a retail partner at consultancy Oliver Wyman in Hong Kong.
“They opened a gap and everyone started plowing through it,’’ Oliver Wyman’s Chan said. “They’ve taken the genie out of the bottle, and now they can’t put it back in.’’
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