Cross-bor­der on­line plat­form to spur in­vest­ment

China Daily European Weekly - - COVER STORY - By FAN FEIFEI fan­feifei@chi­nadaily.com.cn

The newly es­tab­lished busi­ness-to­busi­ness, cross-bor­der e-com­merce plat­form will enhance trust and mu­tual co­op­er­a­tion and spur trade and in­vest­ment ties be­tween mem­bers of the Shang­hai Co­op­er­a­tion Or­ga­ni­za­tion, an­a­lysts say.

In the tech­nol­ogy sec­tor, the busi­ness-to-busi­ness plat­form will use blockchain tech­nol­ogy, in­ter­net of things, cloud com­put­ing and big data to pro­vide sup­port for high-qual­ity prod­ucts in agri­cul­ture, en­ergy, me­chan­i­cal man­u­fac­tur­ing and new ma­te­ri­als.

How­ever, more ef­forts are needed to boost the cross-bor­der pay­ment and set­tle­ment plat­forms and the credit and fac­tor­ing sys­tems, along with steps to ex­plore more fi­nan­cial prod­ucts that are suit­able for SCO mem­bers, the an­a­lysts say.

A gov­ern­ment guid­ance fund also needs to be es­tab­lished for tack­ling the in­vest­ment and fi­nanc­ing needs of en­ter­prises, they add.

In terms of stan­dards for­mu­la­tion, rel­e­vant stan­dards re­lated to sup­ply chain, food safety and pro­duc­tion within the SCO coun­tries also need to be es­tab­lished.

In 2015, Premier Li Ke­qiang pro­posed the es­tab­lish­ment of an SCO e-com­merce al­liance to fa­cil­i­tate transna­tional e-busi­ness. The al­liance is ex­pected to fa­cil­i­tate cus­toms clear­ance of cross-bor­der e-com­merce and im­prove lo­gis­tics ca­pac­ity.

More­over, the de­vel­op­ment plan of the first demon­stra­tion zone in Qing­dao, Shan­dong prov­ince, which hosted the 18th SCO Sum­mit on June 9 and 10, has been par­tially com­pleted.

The zone will help to smoothen co­op­er­a­tion be­tween the SCO coun­tries and build a new plat­form for the mem­ber states to trade on a global scale. It will build over­seas pro­cess­ing and assem­bly bases, lo­gis­tics parks and cross-bor­der e-com­merce trade plat­forms to pro­mote eco­nomic and trade co­op­er­a­tion among SCO mem­bers.

China’s cross-bor­der on­line shop­ping grew by 23.5 per­cent to 6.3 tril­lion yuan ($953 bil­lion; 834 bil­lion eu­ros; £734 bil­lion) in sales last year, ac­cord­ing to iiMe­dia Re­search, a mar­ket con­sul­tancy.

Mar­ket re­searcher eMar­keter es­ti­mates that by 2020, a quar­ter of the Chi­nese pop­u­la­tion, or more than half of China’s digital buy­ers, will be shop­ping for cross-bor­der prod­ucts, either di­rectly on for­eign-based web­sites or through third par­ties.

“China’s cross-bor­der e-com­merce is de­vel­op­ing rapidly, and the lo­gis­tics and freight trans­porta­tion sys­tem within the SCO coun­tries has rel­a­tively im­proved, which in turn will boost eco­nomic and trade co­op­er­a­tion be­tween China and SCO coun­tries,” says Lu Zhen­wang, CEO of Shang­haibased Wan­qing Con­sul­tancy.

Lu says the es­tab­lish­ment of an e-com­merce al­liance among SCO coun­tries will fur­ther break trade bar­ri­ers, ad­mit­ting there are still chal­lenges, for in­stance, due to dif­fer­ent pay­ment meth­ods and set­tle­ment fi­nanc­ing among the mem­bers.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.