The Impact of Cross-border Digital Payment Development on China’s Trade Efficiency
Research Article
Open Access
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The Impact of Cross-border Digital Payment Development on China’s Trade Efficiency

Linxi Xu 1*
1 Victoria University
*Corresponding author: S8079606@live.vu.edu.au
Published on 28 October 2025
Journal Cover
AEMPS Vol.233
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-485-4
ISBN (Online): 978-1-80590-486-1
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Abstract

Cross-border digital payment systems have become increasingly pivotal in international trade, with China’s fintech expansion reshaping global commerce—particularly post-COVID-19, as contactless and digital transactions became standardized. This paper examines the role of such systems in China from 2018 to 2023, analyzing their impacts on trade efficiency and structural changes. It explores how fintech, big data, and logistics jointly shape trade dynamics, employing correlation analysis, ordinary least squares (OLS) regression, and structural tests to assess the interlinkages between payment growth, trade expansion, and logistics performance. Findings indicate that while total trade volume and digital payment transactions experienced significant growth, the average trade value per payment declined, reflecting a shift toward small-value, high-frequency transactions. Statistical results confirm that cross-border digital payments exert a significant positive effect on trade volume (correlation coefficient r=0.94, regression coefficient β1=0.82), yet fail to enhance per-transaction efficiency. Additionally, logistics performance exhibits a strong correlation with both digital payments and trade (r=0.88), underscoring its complementary role in trade facilitation. This structural transformation presents distinct challenges and opportunities for SMEs’ global engagement and policymakers’ formulation of financial infrastructure strategies.

Keywords:

Cross-Border Digital Payment, Trade Efficiency, Ordinary Least Squares.

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Xu,L. (2025). The Impact of Cross-border Digital Payment Development on China’s Trade Efficiency. Advances in Economics, Management and Political Sciences,233,75-82.

References

[1]. Tang, H., Wang, D., & Zhou, L. (2021, December 15). Fintech adoption and trade performance: Evidence from emerging Asian economies. The World Economy.

[2]. Zhou, J., & Wong, M. (2020, September 5). Mobile payment adoption and SME internationalization: Evidence from China. International Business Review.

[3]. People’s Bank of China. (2024, March 31). Cross-border payment statistics report. http: //www.pbc.gov.cn/en/3688110/3688172/index.html

[4]. Zhang, H., Liu, M., & Cheng, R. (2021, June 10). Digital payments and trade facilitation: Evidence from China’s cross-border e-commerce. China Economic Review.

[5]. World Bank. (2023, April 21). Logistics performance index: China profile. https: //lpi.worldbank.org/en/country/CHN

[6]. Li, H., Wang, X., & Chen, Y. (2025, May 12). How does digital finance affect imports, exports and trade performance in China? SSRN Working Paper.

[7]. Asian Development Bank Institute. (2021, November 18). Bayesian gravity model for digitalization on bilateral trade in Asia (ADBI Working Paper No. 1232). https: //www.adb.org/publications/bayesian-gravity-model-digitalization-trade

[8]. International Monetary Fund. (2024, April 29). Cross-border payments integration in Latin America and the Caribbean (IMF Working Paper WP/24/105). https: //www.imf.org/en/Publications/WP/Issues/2024/04/29

[9]. Yeo, A. D., Thai, V. V., & Koh, S. L. (2020, July 20). Logistics performance as a mediator of the relationship between trade facilitation and international trade. Journal of Transport and Supply Chain Management, 14, a573.

[10]. Wang, C., Wang, Y., & Chen, Y. (2025, May 15). The impact of digital trade development on China’s export technological complexity. PLOS ONE, 20(5).

[11]. International Monetary Fund. (2019, June 10). China’s digital economy: Opportunities and risks (IMF Staff Discussion Note SDN/19/03).

[12]. Angrist, J. D., & Pischke, J.-S. (2009). Mostly harmless econometrics: An empiricist’s companion. Princeton University Press.

References

[1]. Tang, H., Wang, D., & Zhou, L. (2021, December 15). Fintech adoption and trade performance: Evidence from emerging Asian economies. The World Economy.

[2]. Zhou, J., & Wong, M. (2020, September 5). Mobile payment adoption and SME internationalization: Evidence from China. International Business Review.

[3]. People’s Bank of China. (2024, March 31). Cross-border payment statistics report. http: //www.pbc.gov.cn/en/3688110/3688172/index.html

[4]. Zhang, H., Liu, M., & Cheng, R. (2021, June 10). Digital payments and trade facilitation: Evidence from China’s cross-border e-commerce. China Economic Review.

[5]. World Bank. (2023, April 21). Logistics performance index: China profile. https: //lpi.worldbank.org/en/country/CHN

[6]. Li, H., Wang, X., & Chen, Y. (2025, May 12). How does digital finance affect imports, exports and trade performance in China? SSRN Working Paper.

[7]. Asian Development Bank Institute. (2021, November 18). Bayesian gravity model for digitalization on bilateral trade in Asia (ADBI Working Paper No. 1232). https: //www.adb.org/publications/bayesian-gravity-model-digitalization-trade

[8]. International Monetary Fund. (2024, April 29). Cross-border payments integration in Latin America and the Caribbean (IMF Working Paper WP/24/105). https: //www.imf.org/en/Publications/WP/Issues/2024/04/29

[9]. Yeo, A. D., Thai, V. V., & Koh, S. L. (2020, July 20). Logistics performance as a mediator of the relationship between trade facilitation and international trade. Journal of Transport and Supply Chain Management, 14, a573.

[10]. Wang, C., Wang, Y., & Chen, Y. (2025, May 15). The impact of digital trade development on China’s export technological complexity. PLOS ONE, 20(5).

[11]. International Monetary Fund. (2019, June 10). China’s digital economy: Opportunities and risks (IMF Staff Discussion Note SDN/19/03).

[12]. Angrist, J. D., & Pischke, J.-S. (2009). Mostly harmless econometrics: An empiricist’s companion. Princeton University Press.

Cite this article

Xu,L. (2025). The Impact of Cross-border Digital Payment Development on China’s Trade Efficiency. Advances in Economics, Management and Political Sciences,233,75-82.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICFTBA 2025 Symposium: Data-Driven Decision Making in Business and Economics

ISBN: 978-1-80590-485-4(Print) / 978-1-80590-486-1(Online)
Editor: Lukášak Varti
Conference website: https://2025.icftba.org/Bratislava.html
Conference date: 12 December 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.233
ISSN: 2754-1169(Print) / 2754-1177(Online)

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