Under the background of the new development pattern of "dual circulation", China is currently at an important stage of consumption upgrade, and has made significant progress in expanding the scope of consumption, improving the level of consumption, and optimizing the consumption structure. However, at this stage, there are still unreasonable external constraints affecting the quality and level of consumption. In recent years, cross-border e-commerce has played a key role in expanding trade scale and stabilizing regional economic development, gradually becoming the primary way for enterprises to expand the international market, enhance brand awareness and image, and improve core competitiveness. As a product of information and communication technology and traditional finance, cross-border e-commerce, with its unique characteristics such as borderlessness, real-time nature, and paperlessness, drives the upgrade of residents' consumption. This indicates that studying the relationship between the development of cross-border e-commerce and the upgrade of residents' consumption in China from both theoretical and practical perspectives, exploring relevant paths to promote the upgrade of residents' consumption and the development of cross-border e-commerce, and establishing an effective and long-term mechanism to promote consumption upgrade, is of great theoretical and practical significance for promoting China's sustainable and healthy development and meeting the people's needs for a better life.