Cross-Border E-Commerce Trade. Since the late-2000s, the People's Republic of China (PRC) has sought to internationalize its official currency, the Renminbi (RMB). Banks operating in the Lingang New Area may directly handle RMB settlement in cross-border trade. However, under the new rules, banks will also focus on the authentication of the transaction and compliance requirements. Dezan Shira & Associates´ brochure offers a comprehensive overview of the services provided by the firm. Another common question is: who handles currency conversion when conducting cross-border trade with China? The new measures took effect October 23, with the exception of the new online reporting system, which will commence January 1, 2020. Small and micro cross-border e-commerce enterprises that handle the collection or payment of foreign exchange of trade of goods less than US$200,000 accumulated per year, are exempt from the registration of “list of enterprises engaged in foreign exchange trade receipt and expenditure.”. More efforts will be made to develop a network of high-standard free trade areas, foster new forms of industry in foreign trade, and set up another group of comprehensive pilot zones for cross-border e-commerce. It also further simplifies the use efficiency of foreign exchange funds as deposit and reduces the capital occupation of foreign investors. China's cross-border e-commerce market has grown remarkably since 2014, with the import proportion of total e-commerce sales soaring to 10.2% in 2017 from 1.6% in 2014. Business reports, such as trade credit and trade financing, can now be handled online through the foreign exchange monitoring system for trade of goods, without the need to report to the local foreign exchange bureau on site (except for certain special business). The number of foreign trade companies kept increasing. Procedures of receipts and payments of relevant funds will be simplified for micro and small cross-border e-commerce companies. Cross border ecommerce in China alone is worth $60 billion according to Bloomberg but legislation might impact it. The verification of foreign exchange receipts and payments documents will be optimized; The registration of special foreign exchange refund business will be cancelled; and. According to SAFE, it is expected that this policy will benefit more than 95 percent of cross-border e-commerce enterprise. On October 23, China’s State Administration of Foreign Exchange (SAFE) issued a notice Huifa [2019] No.28. This rule will take effect January 1, 2020. "E-commerce trade volume reached about 1 billion yuan between January and September. The announcement states that foreign investment enterprises that do not engage in investment activities are allowed to make domestic equity investment with capital fund on the premise of not violating the current special administrative measures for foreign investment access (2019 Negative List) and that the projects invested in China are verified and compliant. Xu Zhixian is the manager of a duty-free shop in the center. Foreign investors’ deposit fund can be used to make investment in China and make payments. HKMA and Bank of Thailand started a research project in the last quarter of 2019 on the application of digital fiat currencies for cross-border trade settlement. businesses establish, maintain, Cross-border e-commerce is growing in popularity in China.The growth rate of China’s cross-border e-commerce has been higher than the total amount of imports and exports in spite of the slowdown of global trade, which means that the penetration of cross-border e-commerce in import and export trade has been very high.. Located on the border of China and Kazakhstan, the China-Kazakhstan Horgos International Border Cooperation Center is the only cross-border trade center in the world. Yet it has been fairly unregulated in many aspects. In addition, the following measures will be implemented to facilitate the foreign exchange receipts and payment for goods trade: These measures were previously piloted in Shanghai, Zhejiang, and Guangdong-Hong Kong-Macau Greater Bay Area, but now will be extended to all provinces in the country. Most Pakistani traders in Xinjiang cannot afford to ship containers through the Khunjerab Pass and rather carry the goods purchased in China with them on the daily buses to Sost, Pakistan, thus avoiding customs duties. Trump Seeks to Intervene as States Join Texas Election Suit Nov 06,2020. The table below shows how China has improved on Trade Across Borders from 2018 to 2019. BEIJING, Oct. 23 (Xinhua) -- China will introduce more measures to better facilitate cross-border trade and investment, including improving foreign exchange management and further streamlining regulatory requirements with a view to attracting foreign investors with a more enabling business environment. It was decided at the meeting that the pilot reform of foreign exchange receipts and payments facilitation will be expanded. Enterprises will make their own decisions on whether or not to set up verification accounts. Product Description. The China International Import Expo (CIIE), a government-backed trade fair, was held Nov. 5 – 10 to promote cross-border e-commerce amid a bruising trade war and global pandemic. Alibaba and e-commerce service provider Youzan both released their earnings reports for … Please contact info@dezshira.com or visit our website at www.dezshira.com. The cross-border import value was worth 218.63 billion baht, down 10.7 per cent. On the first January 2019, the Chinese government issued, updated and imposed new rules on cross-border trade: The Cross-border E-commerce Retail Imports Regulation ("The Circular"); Cross-border, on the other hand, is defined as the direct import of goods from outside China through special cross-border e-commerce platforms and the preferential policies of special economic zones or warehouses (free trade zones). Cross-border e-commerce, as a new international trade model, has also brought huge challenges to China’s customs supervision. Get an overview on the players in the Chinese cross-border e-commerce ecosystem and learn how to choose the right trade partner. The pilot program that facilitates revenue payments under capital accounts will be expanded. The non-financial enterprises can borrow the foreign debts within the registered amount and handle the procedures for remitting the funds with the bank directly, replacing the old rule of case-by-case registration with SAFE for each loan. The Pilot Free Trade Zones (“Pilot FTZs”) offer a high degree of openness in relation to foreign investment and international trade in both goods and services. Cross­border # trade in Pingtan, Fujian province, has experienced double­digit growth despite the # COVID_ ­19. Cross-border sales are defined as the direct import of goods from outside Mainland China, utilizing special channels, known as cross-border e-commerce platforms, and the preferential policies of special economic zones or bonded warehouses. Trade volume of China's export cross-border e-commerce players 2011-2019 Maternal and baby product online shopper share in China 2015, by gender Most common e-commerce issues across MENA 2014-2016 08.10.2020 How to Work with a Trade Partner on a Cross-Border E-Commerce Platform in China Due to the COVID-19 pandemic, the enforcement of social distancing, lockdowns and other measures has driven up the demand for online shopping in China. China’s new foreign exchange measures will ease financing controls on cross-border trade and investment activities to create a better business environment for domestic enterprises and overseas investors. China will set up 46 new integrated pilot zones for cross-border e-commerce, as well as support processing trade with new steps and hold the Canton Fair online to keep foreign trade … The decision was adopted on Wednesday at the State Council's executive meeting, chaired by Premier Li Keqiang. Xu Zhixian is … On March 15, the Chinese side of the cooperation center began to resume operations. Cross-border e-commerce, online trading, and service trade are key tools for China in tackling economic downwards amid the COVID-19 pandemic, Guan Tao, chief global economist of … China will set up 46 new integrated pilot zones for cross-border e-commerce, as well as support processing trade with new steps and hold the Canton Fair online to keep foreign trade … Located on the border of China and Kazakhstan, the China-Kazakhstan Horgos International Border Cooperation Center is the only cross-border trade center in the world. For Tmall Global, specifically, more than 80% of the brands that we currently sell made their China debut on the platform. Find useful cross border trade resources, or cross border trade information about global business and trade on Made-in-China.com. and grow their operations. On March 15, the Chinese side of the cooperation center began to resume operations. The overseas fund centralized management account shall comply with the laws and regulations of the country (or region) where the overseas account is located. Eligible enterprises may open multiple foreign exchange capital accounts, according to their actual business needs, but the number of accounts opened shall meet the requirements of prudential supervision. Alibaba and e-commerce service provider Youzan both released their … 010020070750000000000000011102351384971941. Attendees at the Wednesday meeting agreed on 12 measures to boost cross-border trade and investment. In France, cross border purchases are the fastest growing ecommerce segment with nearly half of all French consumers buying from cross border merchant. The new announcement covers 12 facilitation measures, which ease the controls surrounding cross-border trade and investment financing requirements and aims to provide a better business environment for domestic enterprises and overseas investors. Here is a chart of various products that are popular for cross border trade, comparing traditional B2B with B2C cross-border. While some of the provisions will apply nationwide, many others will apply solely in the pilot area. Now when the domestic equity transferor receives the consideration for the equity transfer of the foreign investor, it can directly handle the procedures of account opening, capital remittance, and settlement in the bank with the relevant business registration certificate. We highlight and break down the six measures for cross-border trade and cross-border investment in this article. Cross-border e-commerce trade has been flourishing in China, with turnover rising 80.6 percent from a year earlier to 90.24 billion yuan last year. China’s leaders emphasize the importance of increasing imports to facilitate both internal and external rebalancing. Cross-border e-commerce in China has grown steadily in recent years, on the back of strong consumer demand for premium brands and high-quality overseas products. Registration for the list of foreign exchange receipts and payments for trade will be facilitated for enterprises and their subsidiaries. China’s foreign exchange control regime concerns all cross-border transactions to a greater or less extent and often plays an important role in driving transaction structures and financing arrangements for … There are 3 kinds of taxes here: Taxes: This is the “variable” taxes that the government puts on the goods. Our subscription service offers regular regulatory updates, In 2018, 13 ministries and commissions of China including CFDA, MOF, GAC, etc. Automation in the professional services segment – the use of information technology to automate basic busine... Dezan Shira & Associates helps The contracted engineering enterprises can manage and allocate the funds of different overseas engineering projects in a centralized way to facilitate the cash flow efficiency and develop in overseas markets. This is particularly efficient for newly set up companies who are only financed by capital funds from the shareholder, and experience difficulty in obtaining supporting documents (such as invoices from suppliers) requested by the bank during the start-up period. 08.10.2020 How to Work with a Trade Partner on a Cross-Border E-Commerce Platform in China Due to the COVID-19 pandemic, the enforcement of social distancing, lockdowns and other measures has driven up the demand for online shopping in China. China Announces New Free Trade Zones in Six Provinces, Pre-investment Capital Planning for China’s Foreign Exchange Control, Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Reddit (Opens in new window), Click to email this to a friend (Opens in new window), How to Stay Compliant under China’s New Foreign Investment Law, How to Use China’s Negative Lists and Foreign Investment Encouraged Catalogue, Dezan Shira & Associates' Service Brochure, An Introduction to Doing Business in China 2020, China’s New Foreign Exchange Rules to Ease Cross-Border Transactions. The Alataw Pass, a major rail port at the China-Kazakhstan border in Xinjiang, has shown great market potential in cross-border e-commerce trade since the business was launched in January. 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