Cross-border e-commerce cements city’s role as an opening-up pioneer
Industry experts voice optimism about sector’s high potential in Chengdu at recent global forum
Chengdu should rely on its booming e-commerce industry to become an opening-up hub for China’s inland region, experts and industrial leaders said at the 2018 Global Cross-border E-Commerce Conference, which took place in the city in late April.
As a southwestern metropolis and one of the country’s crossborder pilot zones, Chengdu is a strong engine for the development of cross-border e-commerce in Sichuan province, with its developed information and logistics network, active online business activities and booming regional economy, said Yang Chunxuan, deputy director of the Sichuan Provincial Department of Commerce.
Now, Chengdu has six crossborder e-commerce industrial parks and over 100 companies operating in the sector. The city’s e-commerce transaction scale surpassed 5 billion yuan ($788 million) last year, growing 117 percent year-on-year and contributing 85 percent to the total across the province. That number is expected to reach 10 billion yuan this year, Yang said.
Yin Jian, deputy director of the Chengdu Commission of Commerce, said the city’s goal is to build a service and resource center for the global cross-border e-commerce industry.
International trade has turned from seafaring to land-based transport, so as an inland city, Chengdu has become a hot spot for cross-border e-commerce because of its well-established overland transportation facilities, Yin said.
He said that, from a global point of view, the industry is burgeoning in emerging markets, such as Russia, Central Asia, East Asia and Southeast Asia, instead of the European and American markets as it was previously.
“Two years ago, Sichuan released a plan to build Chengdu into a western gateway to overseas markets in e-commerce,” Zheng Min, an e-commerce researcher from the Ministry of Commerce, said at the forum.
“The city is also an important part of the Sichuan Pilot Free Trade Zone, which was approved by the State Council last year. With the further opening-up of Chengdu, there is great potential in cross-border e-commerce here,” he added.
Zheng said Chengdu has all the advantages necessary for developing cross-border e-commerce, as it has a complete system of logistics infrastructure with two international airports and a railway transportation hub.
“There are all kinds of resources that Chengdu can rely on, including sufficient funding from venture capital investors, talented professionals, innovative e-commerce operators and competitive products,” Zheng said.
Chengdu has a number of locally made products with global competitiveness, including women’s shoes and industrial commodities.
The e-commerce business also requires policy support from the government. Chengdu’s preferential policies for companies include a bonded area and improved customs clearance.
Cheng Jun, deputy director of the general office of Chengdu, said the local government has released a series of policies since early 2016 to help expand and optimize the business environment.
According to Chen, the Chengdu customs house has launched 14 innovative methods to streamline inspection and quarantine procedures.
Because of the improving business climate, Chengdu’s six crossborder e-commerce parks have attracted over 300 companies.
The city is also home to a number of offline-to-online experience shops and imported goods exhibition centers with total floor area of 60,000 square meters, to supplement the online operations.
Total registered assets of the 123 enterprises engaged in crossborder e-commerce have reached 2 billion yuan, which reflects Chengdu’s strength in the industry, Zheng of the Ministry of Commerce said.
There are also more manufacturers doing business through cross-border e-commerce platforms than before, including those engaged in machine building equipment production, clothing and shoe making, as well as chemicals, which shows local, traditional manufacturers have shifted their focus onto e-commerce.
The booming e-commerce industry has generated growing demand for human resources. Local businesses recently advertised 620 job positions for crossborder specialists.
Li Wei, CEO of logistics service provider SprintPack China, said Chengdu has obvious geographical advantages for doing e-commerce business.
“Compared to coastal cities, it has complete highway and railway transportation networks, which link the city to Europe,” he said.
As a hub city in western China, Chengdu can gather all varieties of goods from surrounding regions and send them to the world.
Qu Jing, vice-president of fashion company Winmex Group, said his business expects to develop new brands with local clothing manufacturing companies and sell clothes produced in Chengdu to foreign customers through e-commerce.
Many cooperative projects were signed during the global e-commerce forum.
The Chengdu Cross-Border E-commerce Comprehensive Pilot Area and the Warsaw branch of the Industrial and Commercial Bank of China signed an agreement to finance local e-commerce companies’ operations in countries involved in the Belt and Road Initiative.
Online shopping service platform Daling Family agreed to establish its headquarters in Wuhou New City of Chengdu.
Osell, a Hong Kong-based crossborder e-commerce site, signed cooperation agreements with Qingbaijiang district of Chengdu.
The city announced it will set up liaison offices in eight overseas cities, including Tokyo, Sydney, Kuala Lumpur, Amsterdam and Bangkok.
Yin of the Chengdu commission of commerce said the offices will cover Australia, Europe and Southeast Asia, to back the establishment of a global network for Chengdu’s cross-border e-commerce sector.