Chinese e-commerce giant, Alibaba Group and municipal government of the city of Yiwu have recently revealed plans to create a Digitized Comprehensive Bonded Zone under the electronic World Trade Platform (eWTP) framework.
According to sources, the extended deal would help make accessibility of cross-border e-commerce easier for SMEs (small and medium-size enterprises) in Yiwu, the current largest wholesale market in the world. The developed one-stop platform will aid SMEs with digitized trade services which comprise of foreign exchange settlement, customs clearance, and tax procedures.
According to Daniel Zhang, CEO & Chairman, Alibaba Group, their firm will jointly work with Yiwu city to facilitate its transformation into a digitized port and hub for small commodities trading, working as a step towards the vision of overall digitization of worldwide trade.
Sources meanwhile speculate that the joint venture will help develop the Yiwu Comprehensive Bonded Zone1, which recently was approved by China’s State Council, into one of the nation’s most-digitized trade zones. A highlight of the trade zone will be unveiling of an offline exhibition area that stages cross-border products that are set for a pilot launch in September.
With Alibaba’s New Retail concept, consumers at the showcase could see and touch a variety of imported products that are offered by merchants on platforms like Alibaba and more. Consumers can also make instant payments and get imported products delivered at home. Initially, the cross-border shopping area will occupy total floor area of around 20,000 square meters, which would potentially expand in the future.
Meanwhile, to meet rising demand for high-quality foreign products from consumers in China, Yiwu is furthering its transformation into a distribution hub dedicated for imported consumer products. Apart from this, the municipal government of Yiwa and Alibaba have also revealed the commencement of Yiwu Digital Customs Clearance Port.
This development would help overseas merchants who are exporting products to China in small quantities using international parcel delivery to clear and complete the customs processes online, delivering products to customers in a more time efficient way.