Same wavelength

Editor's note: The world has undergone many changes and shocks in recent years. Enhanced dialogue between scholars from China and overseas is needed to build mutual understanding on many problems the world faces. For this purpose, the China Watch Institute of China Daily and the National Institute for Global Strategy, Chinese Academy of Social Sciences, jointly present this special column: The Global Strategic Dialogue, in which experts from China and abroad will offer insightful views, analysis and fresh perspectives on long-term strategic issues of global importance.

Leveraging their high internet penetration, robust consumer spending and favorable business environments, the Gulf Cooperation Council countries are emerging as a pivotal hub that bridges Chinese e-commerce with markets in the Middle East and Africa.

Within the Digital Silk Road framework, China and GCC countries are steadily deepening their pragmatic collaboration in key domains such as digital infrastructure, smart logistics, financial technology and data governance. These efforts are helping to create a more efficient and open ecosystem for cross-border e-commerce, significantly boosting the efficiency and transparency of key processes — from product selection, payment and logistics to after-sales services.

China's proposal of new quality productive forces has further injected technological impetus into China-GCC e-commerce cooperation. As an advanced form of productivity in the digital economy era, new quality productive forces are centered on technological innovation. Cutting-edge technologies, such as artificial intelligence, big data, cloud computing and blockchain, are transforming China-GCC e-commerce from traditional online matching to a digital operating model driven by smart decision-making, intelligent contract fulfillment and trusted circulation, enhancing quality and efficiency in key links including logistics, payment settlement, customs clearance, traceability and after-sales service.

Despite the strong development, China-GCC e-commerce faces structural hurdles to achieving sustainable growth in global digital trade.

First, differences in legal systems remain a key barrier for deeper cooperation. Although GCC countries have successively introduced national laws governing electronic transactions and data protection, a unified regional standard has yet to be established. Consequently, Chinese enterprises face elevated compliance costs and market access complexities due to divergent national requirements in Saudi Arabia, the United Arab Emirates and Bahrain concerning cross-border data transfer, digital taxation and privacy. Enhanced alignment in electronic contract validity, data security and intellectual property rights is critically needed. Ultimately, a transparent and predictable legal framework is fundamental for advancing institutionalized cooperation.

Second, insufficient interconnectivity continues to hinder cross-border payment systems. While payment platforms such as Alipay and WeChat Pay have been introduced in countries such as the UAE and Saudi Arabia, technical and regulatory bottlenecks persist in areas including currency settlement, exchange rate conversion and transaction traceability. Most GCC countries still rely on the US dollar for settlement, with direct renminbi settlement accounting for a small share. This leads to elongated payment chains and elevated transaction costs.

Third, cultural and consumer differences present latent risks to brand communication. GCC consumers place a high value on religious traditions, family orientation and brand heritage, and have elevated expectations for e-commerce platforms in terms of content presentation, advertising language and service procedures. Some Chinese brands overlook these local cultural contexts in their marketing campaigns, resulting in weak user loyalty and low repeat purchase rates. While some companies have improved local resonance by introducing Ramadan collections and Arabic interfaces, on the whole, China-GCC e-commerce still needs to deepen its cultural adaptation and brand-building efforts.

Only through institutional coordination, technological trust-building and cultural integration amid diversity can cross-border e-commerce cooperation evolve from incremental expansion to quality co-construction.

The Recommendations of the 20th Communist Party of China Central Committee for Formulating the 15th Five-Year Plan (2026-30) for National Economic and Social Development underscore the need for achieving greater self-reliance and strength in science and technology and steering the development of new quality productive forces. This orientation provides clear direction for upgrading China's innovation system and accelerating industrial transformation, while adding policy momentum to deepening digital cooperation with Global South countries. China-GCC e-commerce cooperation is currently in a critical phase of this innovation-driven strategy, poised to cultivate a cooperation framework with global exemplary effect.

First, priority should be given to improving digital infrastructure to construct synergistic and mutually beneficial economic and trade channels. As the cornerstone for high-quality growth of cross-border e-commerce, both sides can jointly establish cloud computing centers, cross-border data hubs, smart logistics parks and overseas warehouse networks under the Digital Silk Road framework. This will greatly enhance the operational efficiency of data, goods and capital flows. China's leading technologies in AI, blockchain and big data can help Gulf countries upgrade their digital service systems, advance the alignment of platform standards and rules, and build a secure and efficient digital trade network.

Second, financial coordination and innovation should be deepened to build a resilient and efficient settlement ecosystem. As a foundational pillar for cross-border e-commerce, financial connectivity requires joint efforts to expand renminbi clearing networks, scale up digital renminbi pilot programs and establish multi-currency settlement platforms, thereby lowering transaction costs and currency risks. In parallel, measures should be taken to enhance credit support, insurance coverage and guarantee mechanisms for small- and medium-sized enterprises, while strengthening cross-border financial regulation to provide secure and convenient financial services for enterprises from both sides to explore in each other's markets. The synergy between finance and technology will further drive settlement efficiency and unlock the potential in digital trade.

Third, both sides should promote green transformation and explore new frontiers in low-carbon cooperation. In response to the global industrial chain's accelerated shift toward green and low-carbon development, the two sides should integrate energy-saving and carbon-reduction standards into the e-commerce cooperation framework, advance green practices across packaging, warehousing and logistics, and foster low-carbon consumption patterns. China's expertise in new energy equipment, smart logistics and recyclable packaging is highly aligned with the sustainable development strategies of Gulf countries. Both sides may jointly establish green e-commerce demonstration zones and clean logistics corridors to achieve synergistic wins in both economic and ecological benefits.

Finally, institutional coordination and people-to-people bonds should be strengthened to consolidate the foundation for sustainable cooperation. Cross-border e-commerce entails not only the flow of goods and capital, but also the interaction of institutions and cultures. The two sides could leverage multilateral mechanisms and think tanks to enhance policy communication and experience sharing, and advance mutual recognition in areas such as e-commerce legislation, data governance, and intellectual property protection. Meanwhile, it is essential to encourage universities, enterprises and industry associations to jointly build a talent development system for digital trade, deepen cultural exchanges and societal mutual trust, and inject enduring institutional and humanistic momentum into the cooperation.

As digital infrastructure, financial coordination, green transformation and people-to-people exchanges deepen, China and the GCC countries are poised to establish a mutually beneficial digital cooperation model within the Global South's digital transition. This model will contribute a replicable and scalable approach to the high-quality co-construction of the Belt and Road Initiative.

The author is an associate research fellow at the Center for Middle Eastern Studies at Fudan University. The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.