Xi Jinping: “E-commerce, an emerging business with great potential”

21/04/2020

Chinese President fully supports e-commerce. In early April, Beijing announced  to build 46 new integrated FTZs due to boost cross-border e-commerce

President Xi Jinping said on Monday e-commerce is an emerging business with great potential, which can promote sales of agricultural products, help rural residents shake off poverty and facilitate rural vitalization. China’s e-commerce market continues to see high double-digit growth year on year and Chinese leadership already underlined e-commerce contribution for country’s GDP.

Retail sales at China’s cross-border e-commerce businesses recorded a 38.3% increase and reached US$26.4 billion in 2019, contributing 5% of PRC’s overall foreign trade growth last year, according to data from the General Administration of Customs. Thus, the fast growth of cross-border e-commerce in recent years has become a new highlight in the country’s foreign trade, that’s why on April 8th, Chinese Premier Li Keqiang announced China is going to build 46 new integrated pilot zones for cross-border e-commerce around the country to help revive its pandemic-hit foreign trade. 

 

 

The meeting decided to set up another integrated pilot zones for cross-border e-commerce on top of the 59 existing ones. In addition to applying the practices proven effective in boosting the flow of commerce, firms in these zones will enjoy such support policies as exemption of value-added and consumption taxes on retail exports, and assessed levy of the corporate income tax, as reported by media. In addition, the Chinese government is encouraging companies to jointly build and share overseas warehouses.

China has broken the back of the coronavirus spread, and policy is shifting strongly to supporting economic growth. The fiscal spending totaled 5.53 trillion yuan in Q1, down 5.7% YoY, while health expenditure rising 4.8% to 497.6 billion yuan, the Ministry of Finance showed. The Chinese government has mulled allocating an additional quota of about $141.52 billion in advance for the issuance of local government special bonds, said the Ministry of Finance on Monday.

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