Editor's note: Liu Chunsheng, a special commentator on current affairs for CGTN, is an associate professor at the Beijing-based Central University of Finance and Economics. The article reflects the author's opinion and not necessarily the views of CGTN.

From September 25 to 29, the Fourth Global Digital Trade Expo (GDTE) was held at the Hangzhou Convention and Exhibition Center, attracting over 1,800 enterprises from 154 countries and regions. The number of international participants surged by 54 percent compared to 2024, reflecting the event's growing global influence. Against the backdrop of a rising global digital economy, digital trade has become a critical component of China's national economic development and international commerce. By leveraging digital technologies, it offers businesses and consumers innovative commercial opportunities and service models. However, this transformation has also brought challenges and opportunities that need collaborative efforts from governments, enterprises, and societies to foster sustainable digital economic growth and international trade prosperity.

Rising global digital trade

According to the Global Digital Trade Development Report 2025 jointly released by the International Trade Centre and the GDTE organizing committee, the export scale of global digital trade increased steadily from $4.59 trillion in 2020 to $7.23 trillion in 2024, with an average annual growth rate of 12.1 percent. This outperformed the 9.7 percent growth rate of total global trade during the same period, highlighting digital trade's competitive edge. China's digital trade exports reached $793.7 billion in 2024, a year-on-year increase of 10.7 percent, contributing to a more diversified and balanced global digital trade landscape.

The rise of digital trade has accelerated the integration of global markets, providing small and medium-sized enterprises (SMEs) and developing countries with broader market access. Its advantages lie in transcending time and space constraints through digitalization and networking, significantly reducing transaction costs, improving efficiency, expanding market coverage, and promoting trade balance and economic development. For instance, cross-border e-commerce platforms have reconfigured business processes, enabling SMEs and individual entrepreneurs to participate in the global market at lower costs, turning the vision of "buying and selling globally" into reality.

Cross-border e-commerce and technological empowerment

The popularity of cross-border e-commerce platforms and consumer demand for international goods have continued to drive the rapid growth of cross-border e-commerce. In 2024, the global B2C cross-border e-commerce transaction volume reached $1.17 trillion, a 22.2 percent increase year-on-year, with SMEs becoming the mainstay of cross-border e-commerce. Cutting-edge technologies such as artificial intelligence and cloud computing are empowering the entire trade chain, serving as core drivers of innovation and transformation in digital trade.

The application of digital technologies is expanding continuously. AI, in particular, is accelerating the shift of digital trade from "scenario-based applications" to "systematic solutions." Companies are no longer merely exporting standalone digital products but instead offering integrated solutions combining technology, equipment, and services. This trend underscores the deep integration of digital trade with the real economy. For example, at the Hangzhou expo, enterprises like DeepSeek showcased generative AI models that blend poetry and music composition, while others demonstrated AI-integrated agricultural solutions and smart cleaning robots.

Service trade: A new frontier

As global industrial chains move up toward high-value-added segments, corporate demand for professional services (such as R&D design, digital marketing, supply chain management, and legal consulting) is growing steadily. Simultaneously, consumer demand for high-quality digital services (including streaming entertainment, online education, telemedicine, and cloud gaming) is experiencing exponential growth. Digital technology not only meets these demands but also creates new ones, giving rise to entirely new service formats and market opportunities.

Service trade is emerging as a new trend in digital trade. As digital technologies proliferate, the demand for digital services is also continuously growing. In 2024, the scale of global digital service trade reached $4.64 trillion, an increase of 8.3 percent year on year, accounting for 53.4 percent of the global service trade. The connotation of digital trade is evolving from simple "goods exchange" to "capability co-construction." At this year's GDTE, more enterprises stood out by leveraging capabilities in cloud computing, AI, and big data, empowering cross-border trade with integrated "service + technology + standards" solutions.

Challenges and the path forward

The digital trade era has also brought new challenges. Data privacy and cybersecurity have become critical issues, requiring governments and businesses to prioritize the protection of consumers' personal information and network security. Additionally, localization trends are intensifying. Digital trade platforms must better adapt to local cultures, languages, and regulatory environments to provide superior services.

Digital trade may exacerbate the digital divide among nations. Therefore, it is essential to strengthen international cooperation in digital infrastructure construction, help developing countries improve network coverage and quality, and reduce access costs. Simultaneously, an open, inclusive, and non-discriminatory AI trade policy environment should be promoted, with countries avoiding unnecessary trade barriers. As UNCTAD Secretary-General Rebeca Grynspan has emphasized, "Integration must mean inclusion". Deliberate actions are needed to ensure that AI and digital trade expand horizons rather than deepen divides.

The Fourth GDTE has demonstrated how digital trade, fueled by AI and cross-border collaboration, is reshaping global commerce. With its robust growth and transformative potential, digital trade is not only breaking traditional boundaries but also creating a more interconnected and inclusive global economy. The future will depend on balanced policies, technological innovation, and international cooperation to ensure that digital trade benefits all.