HOME| New Concepts & Practice

China Expands Cross-border E-commerce Pilot Zones

2016-03-01 10:05

 

China plans to set up 12 more pilot zones for cross-border e-commerce, according to a statement released by the State Council in January. The 12 cities are Tianjin, Shanghai, Chongqing, Hefei, Zhengzhou, Guangzhou, Chengdu, Dalian, Ningbo, Qingdao, Shenzhen, and Suzhou. Their establishment will provide new support to boost the country’s foreign trade. 

The move follows the 2015 opening of a pilot zone in Hangzhou, where e-commerce giant Alibaba is headquartered. The statement mandates that new pilot zones shall emulate the Hangzhou model, but allows them to adapt development measures to local conditions.

By experimenting in the areas of technical standards, business procedures, regulatory mechanisms and informatization development, the new zones aim to provide transferable experience to businesses nationwide. The zones will attract businesses, help create jobs, and nurture new business models to boost foreign trade and stimulate the economy, the State Council has announced.

Expansion of the pilot zones comes even as the nation grapples with sluggish foreign trade. Total export and import values for 2015 decreased seven percent year on year to RMB 24.59 trillion, falling for the first time since 2009.

The Ministry of Commerce has predicted that the trade volume of cross-border e-commerce in 2016 will reach RMB 6.5 trillion, and that figure is expected to hit RMB 8 trillion in 2017, accounting for 20 percent of China’s foreign trade within the next few years.

Global Top 500 Firms Invest Actively in China

The world’s top 500 firms increased investment in China last year, manifesting unflagging confidence in the economic outlook of the world’s second largest economy, according to China’s Ministry of Commerce.

Multinational corporations including Audi, Fiat, Samsung, ITOCHU, and Intel, all increased their investment in China in 2015, each funneling more than US $100 million, according to ministry data.

The number of regional headquarters and research institutes founded by these corporations also continued its rise last year. At present, international companies have endowed more than 2,400 research institutes in China.

Statistics indicate that, in the January-November period last year, the number of newly-registered foreign-invested enterprises hit 6,040 in pilot free trade zones in Guangdong, Tianjin and Fujian, attracting RMB 445.8 billion in contracted foreign investment.

The introduction of the negative list system has helped entice foreign investors, per the ministry, whose statistics demonstrate that the actual use of foreign capital (which excludes data of the financial sector) rose 6.4 percent year on year to US $126.27 billion in 2015.