Ama­zon to bring for­eign goods di­rectly into China

China Daily (Canada) - - ACROSSAMERICA - By LIAN ZI in San Fran­cisco zil­ian@chi­nadai­lyusa.com

US e-ecom­merce gi­ant Ama­zon will set up op­er­a­tions in Shang­hai’s free trade zone and also signed an agree­ment to give Chi­nese cus­tomers ac­cess to prod­ucts from its global sup­ply chain, the com­pany said Wed­nes­day.

“Ama­zon also will open a lo­gis­tics ware­house to ex­pand ex­ports of goods from China,” Shang­hai mu­nic­i­pal au­thor­i­ties said in a state­ment.

“We’re go­ing to have lower ship­ping charges and faster de­liv­er­ies into the free trade zone so there are go­ing to be many ben­e­fits,” said Diego Pi­a­cen­tini, vice-pres­i­dent of Ama­zon’s in­ter­na­tional con­sumer busi­ness.

Wang Xiao, the CEO of In­nospring, is op­ti­mistic about Ama­zon’s plan.

“Ama­zon has its great ad­van­tage in e-com­merce sales and lo­gis­tics. And it is very po­lit­i­cally wise to get be­hind a project that of­fi­cials are sup­port­ing,” she told China Daily.

Wang also said that al­though Ama­zon had been op­er­at­ing in China for a decade, it still needs to pay at­ten­tion to brand­ing it­self in China’s mar­ket when com­pet­ing with other lo­cal e-com­merce gi­ants like Alibaba and Jing­dong.

“It will be a ben­e­fit for Chi­nese cus­tomers by pro­vid­ing them ac­cess to in­ter­na­tional mer­chan­dise and more choices when pur­chas­ing goods,” said Wang.

“The ag­gres­sive plan of Ama­zon to jump into the Chi­nese mar­ket will boost com­pe­ti­tion against lo­cal ri­vals in­clud­ing large com­pa­nies like Alibaba and smaller cross- bor­der e-com­merce groups,” said Wang.

“The com­pe­ti­tion will ab­so­lutely be­come fiercer than be­fore af­ter Ama­zon an­nounced its plan,” said Kong De­hai, sec­re­tary-gen­eral of US-China As­so­ci­a­tion of High­Level Pro­fes­sion­als (UCAHP), adding that Ama­zon’s suc­cess will de­pend on tax poli­cies and prices.

Ama­zon orig­i­nally en­tered China in 2004 by ac­quir­ing shop­ping web­site Joyo.com, and re­named it as Ama­zon.cn in 2007.

Since launch­ing last year, the Shang­hai cross bor­der e-com­merce pilot plat­form has al­ready at­tracted 32 large over­seas com­pa­nies and more than 10,000 kinds of mer­chan­dise, ac­cord­ing to 36kr, a Sil­i­con Val­ley, Cal­i­for­nia-based high-tech me­dia.

The Shang­hai Free Trade Zone, of­fi­cially called China (Shang­hai) Pilot Free Trade Zone, be­gan in 2013. It is the first free trade zone in main­land China. The zone cov­ers an area of 29 square kilo­me­ters and in­te­grates four ex­ist­ing bonded zones in the district of Pudong .

JING WEI / ASIANEWSPHOTO

An Ama­zon ban­ner dis­plays at an elec­tronic ex­hi­bi­tion in Shang­hai.

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