According to data from China's Ministry of Commerce, there are more than 5,000 cross-border E-commerce platforms, and over 200-thousand affiliated businesses operating in China. 

China Customs reported that from January to November last year, the total trade volume of imports via cross border E-commerce companies reached over 1 billion yuan.

Experts predict cross border E-commerce will be 20 percent of China's total foreign trade volume in next few years, with a 30 percent annual growth rate.

With the new tax policy, online cross-border trade is expected to compete with traditional retailers and domestic manufacturers in a fairer environment.

"The tax policy on cross border E-commerce was vague. It was a large grey area. It's not compatible with the rapid expansion of the cross border e-commerce," said Lai Yang, Secretary General, Beijing Commerce Economy Association.

"There must be a standardized and lawful roadmap for its development, to avoid a wild growth that may lead to other problems."