China to set up new cross-border e-commerce pilot zones
On 13 July 2018 the State Council officially decided to set up a batch of cross-border e-commerce comprehensive pilot zones in 22 cities. Among the designated areas are Beijing, Hohhot, Shenyang Changchun, Harbin, Nanjing, Nanchang, Wuhan, Changsha, Nanning, Haikou, Guiyang, Kunming, Xi’An (the location of Horsten’s office in China), Lanzhou, Tangshan, Wuxi, Weihai, Zhuhai, Dongguan, Yiwu and Xiamen. With this move, the country continues to promote the opening to the outside world, along with the transformation and upgrading of foreign trade policies for Chinese companies.
It was pointed out that accelerating the growth of international e-commerce is an important measure to increase imports and exports, and better meet the needs of consumers, thus boosting both domestic and out-of-China development. Since 2015 the State Council approved the establishment of free trade zones for e-commerce in Hangzhou and 13 other zones. The result has been an impressive growth of cross-border sales growth for two consecutive years. Customs clearance and logistics are key topics of these reforms, with the aim of creating a standard and shared approach to global markets, thus driving business innovation and industry upgrade.
If you prefer to sell your products directly to the Chinese consumer instead of using a Chinese importer or agent, but don’t have your own legal entity or partner in China, you could consider selling your products through cross-border e-commerce (CBEC). By using cross-border e-commerce, an overseas legal entity can export its products to a bonded warehouse (B2B2C) or via the direct mail (B2C) model directly to the Chinese consumer.
The latest State Council conference pointed out a series of key operations that will be positively affected by the establishment of free trade zones – logistics, warehousing and customs clearance in particular. The aim is to further simplify the whole process: examination and approval, customs clearance integration, information sharing, a more tolerant yet prudent and effective supervision.
This will increase the import of foreign competitive products on one hand and encourage Chinese enterprises to speed up the construction of overseas warehouses – and the establishment of an effective global marketing network – on the other.
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