Analysis of the internationalization strategy model of China-Kazakhstan cross-border e-commerce enterprises

Al-Farabi Kazakh National University Farabi International BusinessSchool, Kazakhstan Almaty  050040 Zhaojun Xiao

Abstract: This paper examines Chinese and Kazakh cross-border e-commerce companies and explores their internationalization strategies and development paths. By analyzing the current state of the e-commerce markets, policy environments, and business practices in both countries, this paper identifies four primary internationalization models: export-oriented, platform-dependent, self-branded, and localized. The study finds that Chinese and Kazakh cross-border e-commerce companies face challenges in internationalization, including inadequate infrastructure, cultural differences, policy barriers, and high logistics costs.

Key Words:Cross-border e-commerce; Internationalization strategy; China-Kazakhstan trade; Belt and Road Initiative

Introduction：

With the rapid development of the global digital economy and the deepening implementation of the Belt and Road Initiative, economic and trade relations between China and Kazakhstan have entered a new stage of development. As a key node in the Silk Road Economic Belt, Kazakhstan possesses unique geographical advantages and market potential for Chinese companies’ “going global” strategies. Cross-border e-commerce, as a key channel for China-Kazakhstan trade cooperation, is becoming a significant force in promoting the digitalization and intelligentization of bilateral trade.

1. Theoretical Foundation and Research Background

1.1 Overview of China-Kazakhstan Economic and Trade Cooperation under the Belt and Road Initiative

     Since its proposal in 2013, the Belt and Road Initiative has become an important framework for promoting economic cooperation between China and Central Asian countries. As a core country along the Belt and Road Economic Belt, Kazakhstan not only enjoys a superior geographical location but also boasts abundant resources in energy, minerals, and agriculture, laying a solid foundation for the development of cross-border e-commerce between China and Kazakhstan. According to statistics from China’s Ministry of Commerce, China-Kazakhstan bilateral trade reached US$31.5 billion in 2024, a year-on-year increase of 22.4%, with transactions conducted through cross-border e-commerce accounting for 18.7% of the total trade volume. This growth demonstrates the significant role of the digital economy in driving China-Kazakhstan cooperation.

As shown in the table above, the scale of cross-border e-commerce between China and Kazakhstan has grown annually, with its growth rate significantly exceeding that of overall trade, indicating that cross-border e-commerce has become a significant force driving the optimization and internationalization of China-Kazakhstan trade structure.

1.2 Theoretical Foundations of Enterprise Internationalization

Enterprise internationalization refers to the process by which a company gradually expands from its domestic market to foreign markets. Its theoretical foundations encompass multiple models and perspectives, the most representative of which are the Uppsala model, the OLI paradigm, and the network theory model.

The Uppsala model (Johanson & Vahlne, 1977) emphasizes that enterprise internationalization is a gradual learning process, with companies typically first entering countries with similar cultures and lower risks to their home market. This model has some explanatory power in the practice of cross-border e-commerce between China and Kazakhstan: Chinese companies initially began with Sino-Russian trade and gradually expanded into the Central Asian market, demonstrating the characteristics of gradual internationalization.   

2.Analysis of the Current Situation of China-Kazakhstan Cross-border E-commerce Internationalization

2.1 Overview of the Development of the China-Kazakhstan Cross-border E-commerce Market

     The rapid growth of the China-Kazakhstan cross-border e-commerce market is one of the important achievements of the Belt and Road Initiative. With the deepening cooperation between the two governments in areas such as the digital economy, logistics infrastructure, and electronic payments, China-Kazakhstan cross-border e-commerce is transitioning from “digitalization of trade” to “digitalization of industry.” According to data from the General Administration of Customs of China and the State Statistics Committee of Kazakhstan, bilateral e-commerce transactions between China and Kazakhstan will reach US$5.9 billion in 2024, a 156% increase from 2020. Of this total, B2B transactions account for approximately 64%, B2C transactions for 31%, and C2C transactions for 5%, indicating that enterprise-level cross-border transactions remain the dominant force.

2.2 Main Models of Internationalization of China-Kazakhstan Cross-Border E-commerce Enterprises

As the market matures, China-Kazakhstan cross-border e-commerce enterprises have gradually developed diverse development models in the process of internationalization. A statistical analysis of major China-Kazakhstan cross-border e-commerce enterprises in 2024 reveals four main internationalization models: export-oriented, platform-dependent, self-branded, and localized operations.

Platform-dependent model: This model relies on large platforms such as Alibaba International Station, Amazon, and Kaspi.kz for market expansion. Companies enter overseas markets through the traffic, payment, and logistics services provided by the platforms.

2.3 Existing Challenges and Constraints

Despite the enormous potential of the China-Kazakhstan cross-border e-commerce market, companies still face multiple challenges in their internationalization efforts, primarily in logistics, payment systems, cultural differences, and policy coordination.

First, an imperfect cross-border logistics system is a core bottleneck hindering internationalization. Land transport between China and Kazakhstan is limited by customs clearance times and insufficient warehousing facilities.

3. Optimization and Innovation of Internationalization Strategy Models for Sino-Kazakh Cross-border E-commerce Enterprises

3.1 Digitally Driven Strategic Innovation Paths

In the process of cross-border e-commerce internationalization, digital transformation has become a core means for companies to enhance their competitiveness. First, the application of big data and artificial intelligence (AI) in market analysis provides companies with accurate consumer insights and sales forecasting capabilities. By analyzing Kazakh user behavior data, search keywords, purchasing habits, and social media interactions, Chinese companies can develop personalized marketing plans.

3.2 Innovation and Integration of Internationalization Models In practice, the internationalization model of Sino-Kazakh cross-border e-commerce companies is developing in the direction of innovation and integration, forming three major trends: platform ecology, cross-border live broadcast + social e-commerce, and localized service system.  Platform ecology internationalization strategy Companies achieve market resource integration by building a multi-platform linkage ecosystem.

Conclusion：This paper systematically examines the internationalization strategies of Chinese and Kazakh cross-border e-commerce companies within the context of the Belt and Road Initiative. Through theoretical analysis and case studies, this paper finds that the internationalization paths of Chinese and Kazakh cross-border e-commerce companies are primarily characterized by diversity and digitalization. Companies of varying sizes and types have adopted various models in their internationalization process, including export-oriented, platform-dependent, self-branded, and localized operations.

References:

【1】Yermekbayev,A.,Sarybayev,M.,& Suriguga, C.(2022). China-Kazakhstan strategic partnership and bilateral economic cooperation.Journal of Central Asian Studies,85(1),18-27.

【2】Kembayev,Z.(2020).Development of China–Kazakhstan cooperation: building the silk road of the twenty-first century?.Problems of Post-Communism,67(3),204-216.