Foreign Exchange Risk Management: Chinese Cross-Border E-Commerce Enterprises
DOI:
https://doi.org/10.54097/7y8bwj67Keywords:
Foreign Exchange Risk; Cross-Border E-Commerce; Risk Management Framework; Financial Resilience; Digital Trade.Abstract
Cross-border e-commerce has emerged as a critical driver of China’s participation in global digital trade, but its rapid expansion exposes enterprises to significant foreign exchange (FX) risks. However, the understanding of its FX risk exposure remains fragmented, often overlooking the interplay between macro-institutions, market infrastructures, and firm-level capabilities. This study investigates the sources, mechanisms, and strategies of FX risk management within this sector. Using China’s trade data as a case background, the research identifies three primary dimensions of risk: the external tariff and policy environment, the cross-border payment and settlement system, and enterprise-level financing and governance. The analysis highlights how policy volatility, reliance on third-party platforms, and firm-level capacity constraints shape the sector’s vulnerabilities. Based on these findings, the study proposes a multi-tiered framework. To address these vulnerabilities, this study proposes an integrated risk management framework that synergizes macro-level policy support, meso-level payment system optimization, and micro-level enterprise capacity building. Together, these measures can shift FX risk management from a defensive posture to a strategic capability. This research underscores the business value of strengthening profitability and competitiveness for Chinese enterprises while also contributing to the broader stability of China’s foreign trade and digital economy.
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