China’s new 24 cross-border ecommerce zones

Jiong-Jiong Yu
Senior Retail Analyst
@RetailAnalysis

Date : 21 January 2020

The Chinese State Council has identified another 24 cities for large scale cross-border ecommerce, as ecommerce trade between China and other nations is growing rapidly.

Favourable policy to support growth

These 24 new cities include Shijiazhuang in Hebei province, Fuzhou in Fujian province, and Yantai in Shandong province. In addition to the 35 that have previously been established, cross-border ecommerce zones will extend to most of China’s largest cities.

Companies in these zones are entitled to benefits such as tax rebates, government support to set up ecommerce platforms, and international logistic services.

For example, international brands can ship merchandises to bonded warehouses without being subject to normal import duties or rules for quarantine and quality checks on goods such as food, cosmetics and health supplements.

High demand for goods that cannot be found on the domestic market

On the back of strong consumer demand for premium brands and high-quality overseas products, China’s cross-border ecommerce reached US$1.1tn in sales in 2018.

It is estimated that by end of 2020 a quarter of the Chinese population will be shopping online for overseas products using cross-border ecommerce websites such as Alibaba’s Tmall Global and NetEase’s Kaola.

We already have a strong network and will work closely with our partners in the newly announced pilot zones to continuously provide seamless cross-border logistics service and better serve both merchants and consumers,” said James Zhao, director of import logistics at Alibaba’s logistics affiliate Cainiao Network.