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Opportunities for Border Trade Cooperation between China and ASEAN under Digitalization

Author(s)

Lu Lu*

Affiliation(s)

Yunnan College of Business Management, Kunming, Yunnan, China *Corresponding Author

Abstract

With the fast growth of the digital economy and the full enforcement of RCEP rules, China-ASEAN border trade has undergone great changes. Traditional offline transaction modes are gradually replaced by digital, intelligent and unified operation systems. As an important part of China-ASEAN economic and trade cooperation, border trade drives economic growth in border areas and promotes industrial connection between the two sides. However, obvious problems in tax management restrict its further development. Problems still exist, including high expenses of cross-border settlement, big differences in tax systems among different countries, low recognition rate of cross-border electronic invoices, and great difficulties for small and medium-sized enterprises to meet relevant compliance requirements. Under such circumstances, this paper uses Transaction Cost Theory and Regional Tax Coordination Theory to analyze the digital transformation of China-ASEAN border trade. Digital transformation brings new cooperation opportunities: it optimizes trade modes, reduces enterprise operation costs, improves digital financial service systems and unifies regional regulatory standards. The author develops targeted improvement strategies after fully weighing fiscal and tax compliance rules and long-term trade development goals. These strategies will cut operational costs for enterprises in border areas, reduce tax compliance risks faced by these businesses, and support steady, high-quality development of China‑ASEAN border trade.

Keywords

Digitalization; China–ASEAN; Border Trade; Cross-Border Fiscal and Tax Matters; Trade Cooperation

References

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