China issues document to boost development, models of foreign trade

China’s State Council, the cabinet of China, has issued a document containing 25 measures to promote the development of new forms and models of foreign trade, reported Economic Information Daily Monday.
The document requires to expand the scope of the cross-border e-commerce comprehensive pilot zones, and encourages cross-border e-commerce platforms, operators and supporting service providers to accelerate the cultivation of independent brands.
It also proposes to support pilot areas in exploring and innovating ways of market procurement trade in light of local conditions and attract more domestic trade entities to carry out foreign trade.
It says that efforts would be made to cultivate about 10 integrated domestic and foreign trade markets with export value of more than 100 billion yuan and improve overseas warehouse network to boost cross-border e-commerce development.
Accelerating the development of new forms and models of foreign trade is in line with the development trend of international trade and innovation, said Yin Zhengping, a researcher at the Chinese Academy of International Trade and Economic Cooperation.
“In recent years, China’s new foreign trade forms and models have developed rapidly, with cross-border e-commerce standing out.
“According to statistics from the General Administration of China, China’s cross-border e-commerce imports and exports in 2020 stood at 1.69 trillion yuan, with a year-on-year increase of 31.1 per cent.
“The document will further promote the sustainable development of cross-border e-commerce,” said Yin.
Wu Qi, Executive Director, Wuxi Institute of Digital Economy said China has expanded its cross-border e-commerce pilot zones five times totaling 105, covering 30 provinces, autonomous regions and municipalities.
Qi added that the development of cross-border e-commerce service platform construction, import and export return and exchange management, independent brand cultivation and other aspects were relatively inadequate.
According to Yin Zhengping, the document will provide a policy basis for foreign trade innovation and development in the new development stage, as it covers all aspects of cross-border e-commerce development and puts forward corresponding supporting measures.
Yin noted that the document provides suggestions on improving bonded maintenance business and promoting the development of offshore trade business.
It also proposes to introduce the “sandbox supervision” model, adopting inclusive and prudent supervision measures to provide a safe space for business innovation and help put risks under control.