News last week that the Chinese government is relaxing ownership rules around domestic ecommerce businesses have been closely followed by announcements promoting cross-border trading.
Changes to tax laws in China are under way in an attempt to boost spending, as are projects aimed at making the process of international payment simpler and more reliable. In addition to the introduction of credit insurance, there will also be state subsidies for international ecommerce projects.
Last year, China Post – China’s state post and delivery concern – was in high level talks with at least one major UK parcel firm to investigate the possibility of a formalised partnership, to handle the millions of parcels that flow into the UK from China each year, and possibly looking at using the UK as a hub for Chinese deliveries going to other European destinations.
Statements issued by the Chinese government indicate that Customs clearance procedures will streamlined, along with the use of quality control and supervision agencies to allow collective declaration, examination and release of goods.
In addition, ecommerce retail exports, and payments made in yuan will be promoted through the use of tax incentives.
On Friday (19 June) the Chinese government announced it will allow full foreign ownership of some ecommerce businesses, in order to help growth and competitiveness.
According to Xinhua, the official Chinese state news agency, cross-border ecommerce has generated in the region of $3.32bn since 2013. Trade volumes in the first five months of 2015 are said to be worth almost that of the whole of 2014.
