Cross-border e-commerce trade soars in Shanghai FTZ

E-commerce in bonded areas of the Shanghai FTZ rises by 58.15 percent year-on-year to 1.96 billion yuan ($281.65 million) from January to June. [Photo/pdtimes.com.cn]

Total orders made through the cross-border e-commerce channels of bonded areas in the China (Shanghai) Free Trade Zone (FTZ) exceeded 63 million in the first half of this year, growing 37.75 percent year-on-year and accounting for 42.75 percent of the city's total cross-border e-commerce orders.

E-commerce trade in bonded areas of the Shanghai FTZ rose 58.15 percent year-on-year to 1.96 billion yuan ($281.65 million) from January to June, according to statistics.

Cross-border e-commerce trade in the FTZ's Waigaoqiao Bonded Area, Waigaoqiao Bonded Logistics Park, and Pudong Airport Free Trade Zone registered rapid growth in the first half, which has accelerated the high-quality development of cross-border e-commerce in the FTZ.

Additionally, the real economy was hit hard by the COVID-19 pandemic, but online businesses have seen significant growth.

Cross-border e-commerce acts as a bridge between overseas suppliers and domestic consumers. More and more global enterprises are moving online to explore business opportunities amid the COVID-19 pandemic.

Waigaoqiao Bonded Logistics Park in the Shanghai FTZ, the first place in Shanghai to be listed as a demonstration park for promoting the development of cross-border e-commerce, has witnessed sharp growth driven by leading enterprises such as Chinese e-commerce giant JD.

Statistics show that JD received 750,000 orders during this year's "618" shopping gala, which ran from June 1 to 20, making around 100 million yuan in sales. Cross-border orders generated in Waigaoqiao Bonded Logistics Park accounted for 12 percent of JD's total cross-border e-commerce sales.

The total number of cross-border orders in the logistics park is expected to exceed 5 million, making it an important driver behind the development of cross-border e-commerce in Shanghai.

Local authorities have said that since the establishment of the Shanghai FTZ in 2013, bonded areas in the Shanghai FTZ have made strong efforts to explore the new development model by integrating foreign trade and the internet, and accelerate the advancement of key systems and functions.

Authorities of the bonded areas in the Shanghai FTZ said that they will ramp up efforts to facilitate the diversified development of cross-border e-commerce, aiming to offer a comprehensive and stable cross-border supply chain.

Additionally, the local government plans to cultivate a number of third-party organizations to provide e-commerce enterprises with services related to payment, logistics, operations, customs clearance, and financing in an effort to improve the cross-border e-commerce ecosystem.