Digital trade is an important part of the digital economy. Driven by digital technologies, digital trade has flourished and become a new trend in the development of international trade, injecting new momentum into global economic activities.

1. Similarities

Trade practices are consistent in nature

The nature of trade has not changed since prehistoric times. It has always been the exchange of services and goods between humans to satisfy their needs. Both digital trade and traditional trade cannot be separated from the essence of trade (the transfer of services, commodities and production factors among different subjects as the core), but the way of activity is different.

The internal drivers of trade converge

According to classical international trade theories such as the theory of comparative advantage and the theory of absolute advantage, the relative (absolute) difference in productivity between countries will lead to the relative (absolute) difference in production cost. Therefore, a country should only produce the products with relative (absolute) advantage, and use part of the products to exchange for other products without advantage. Both countries that trade in this way will gain higher consumer benefits. The division of labor, specialized production and the corresponding economies of scale are the intrinsic drivers of digital trade and traditional trade.

The economic value of trade is similar

The economic value of traditional trade and digital trade is mainly reflected in the following aspects: overcoming the obstacles of the flow of production factors among various economic subjects, strengthening the price linkage and supply and demand matching of resources in various regions; We will promote balanced development of the resource structure and strengthen the technological and resource advantages of each main body. Weaken information asymmetry, improve the correlation between economic subjects; Stimulate the innovation capacity of the economy, optimize production efficiency and increase economic benefits.

1. Differences

Trade comes in different eras

From the first to the third industrial revolution, the way of production and life was greatly changed. For example, the application of internal combustion engine and steam engine caused mechanical production to replace manual labor, and the scale of trade products was greatly expanded. Changes in communications technology have made real-time communication possible; The emergence of trains, planes and other means of transportation promoted long-distance transportation. On this basis, traditional trade has flourished. However, digital trade, born in the third and fourth Industrial Revolution, is a new type of trade activity. The popularization of digital technology has led to the change of communication and transmission mode, and the traditional industry has entered the upgrading stage of intelligence and digitalization. Data has become an important means of production.

The temporal and spatial attributes of trade

The factors that affect the traditional trade cycle are mainly exchange rate and commodity price, while in digital trade, the uncertainty of the time from the start of the transaction to the completion of the transaction is greatly reduced through digital technology. At the same time, traditional trade is greatly restricted by status distance, while digital trade breaks the strict spatial attribute, and the restriction effect of geographical distance is greatly reduced.

The main body of trade has changed

Traditional trade transactions occur in retailers, wholesalers, agents and many other intermediary institutions, the demand side and the supply side do not directly trade. In digital trade, however, modern ICT and information networks allow direct transactions between supply and demand. In addition, the promotion of C2C, B2C and other business models has increased the role of individual consumers in trade activities. In the future digital intelligence era, C2M, C2B and other business models will further highlight the importance of consumers.

Conversion of trade object

The objects of traditional trade are mainly factors of production, services and goods. Digital trade highlights the key role of digital technology in production, ordering, delivery and other links. The trading objects mainly include digital services and products transmitted through the Internet and other digital means, physical goods traded on e-commerce platforms, and digital information and knowledge, which are more complex and diversified than traditional trade.

Changes in the way trade is operated

The development of traditional trade requires paper documents, certification materials and fixed trading venues, while digital trade is mainly completed on the Internet platform, and the whole transaction process is realized electronically. In the traditional trade, goods are mainly transported by trains, ships, planes and other means, with a large scale and high economic value. In digital trade, the trade of digital services and products is completed by digital delivery, and the goods purchased by individuals on e-commerce platforms are delivered by express, post and other means. Some cross-border e-commerce enterprises carry out trade in bonded warehouses and overseas warehouses.

06 Trade regulatory system adjustment

Customs, commercial departments and other international organizations such as the World Trade Organization constitute the main regulatory bodies of traditional trade, and international trade agreements and domestic trade systems of each country are the main legal norms of traditional trade. However, the digital trade regulatory system not only includes the traditional trade regulatory agencies and legal norms, but also incorporates data regulation into the system construction.

The article is from Digital Trade and the New Development Pattern, edited by China ICT Academy, People's Publishing House, 2022.