China (Xi’an) Cross-border E-commerce Comprehensive Pilot Area Lunches

On December 21, 2018, the launching ceremony for China (Xi’an) Cross-border E-commerce Comprehensive Pilot Area (CXCECPA) was held in Xi’an International Trade & Logistics Park.

E-commerce, an important online method to carry out international business via Internet, is a sheer new trade pattern integrating import and export transactions to promote greater communications and logistics. Since China set up the first cross-border e-commerce comprehensive pilot area in March 2015, 35 cities have been allowed to establish such areas. In July 2018, Xi’an was approved as the third batch of cities to try hands, which is of milestone significance for the city.

Gaining supports from Xi’an Comprehensive Free Trade Zone, Xi’an High-tech Industries Comprehensive Free Trade Zone, Xi’an Aviation Base Comprehensive Free Trade Zone, Shaanxi Xixian Bonded Logistics Center and Xi’an Export Processing Zone, CXCECPA focuses on B2B mode for cross-border trade, promoting the coordinated development between export and import. By building and improving “two platforms and six systems”, it vows to shape a complete set of cross-border e-commerce industrial chain and ecosphere.

By 2020, CXCECPA will take on striking industrial features and be equipped with sound matching services. With efforts to reform and innovate for 3-5 years, Xi’an will be built into a center for cross-border e-commerce industrial gathering, for innovation and entrepreneurship, and for comprehensive supports in middle and west China. What is more, it will, by conducting multi-points cooperation with countries and regions alongside the Belt and Road, shape itself into a gathering area and an industrial demonstration zone for cross-border e-commerce on international stage.

CXCECPA will be cultivated in two phases. In the first phase, Xi’an International Trade & Logistics Park (XITLSP), Airport New City of Xixian New Area, and Qujiang New District will be set as the first batch of pilot units for innovation pioneering, and in the second phase, other qualified districts (counties) and development zones will be listed for comprehensive pioneering.

It is known that since Xi’an won approval from the General Administration of Customs to try cross-border e-commerce in 2004, it has grown into a flourishing industrial distribution with distinct features. XITLSP has set up “Ulife” online platform, built a matching service chain and opened direct freight flight routes from Amsterdam to Xi’an and from Chicago to Xi’an. In addition, it also has forged a trade pattern of “Sino-EU Chang’an freight train + cross-border e-commerce”. Airport New City of Xixian New Area, taking advantages in “adjacent to airport + bonded + cross border + entry port”, has built a new cross-border e-commerce mode focusing on international express and cold chain services. Qujiang New District has also been crafting its industrial park in fully integrating “government service, production, university, research with application”.

Xi’an has carried out 2.052 million transactions in the first 11 months this year, in which import and export account for 77,000 and 198,000 respectively with total value exceeding $ 77 million, contributing to meeting the diversified demands of consumers and promoting of foreign trade transformation and upgrading.

Policy support

Xi’an has promulgated policy to develop CXCECPA

Building the industrial chain and ecosphere for cross-border e-commerce

It is informed from the launching ceremony that Xi’an has promulgated Policy on Promoting the Development of CXCECPA to expand the business space of traditional foreign trades via “Internet +” and improve the operational environment of cross-border e-commerce.

On supporting the agglomerated development, shaping industrialized development, promoting logistic services, improving financial service systems and strengthening business communication & training, the Policy puts forward 17 financial measures to assist the building of the industrial chain and ecosphere for cross-border e-commerce.

For supporting agglomerated development, Xi’an supports the constructions of “cross-border e-commerce parks” and invites leading enterprises of this kind to relocate there. By agglomerating a number of promising and influential enterprises, the industrial chain of cross-border e-commerce in parks will develop on the healthy track. The city grants capital support no exceeding RMB 1 million to a cross-border e-commerce enterprise setting its national or regional headquarters in Xi’an.

For shaping industrialized development, Xi’an vows to sharpen competiveness, raise the branding awareness and promote innovative development of cross-border e-commerce enterprises centering on introducing renowned third party transaction platforms, encouraging cross-border online trades, developing third party payment platforms, guiding the enterprise to grow stronger & bigger, integrating online with offline developments, cultivating brands and pulling for developing APPs independently.

For promoting logistic services, Xi’an specifies to construct related matching facilities including building overseas warehouses, erecting commodity exhibition & trade centers, setting up local inventory services and combining Chang’an (Sino-Europe freight train) with cross-border e-commerce. It will support the undertakings of major service systems to facilitate enterprises to expand overseas sales channels, enhancing their influence on international stage.

For improving financial service systems, Xi’an welcomes various equity investment institutions and industrial funds to invest in cross-border e-commerce, and support cross-border e-commerce enterprises to insure ECI (export credit insurance) to reduce foreign exchange risk and enjoy the existing preferential policies of the city.

For strengthening business communication & training, Xi’an supports communications, professional trainings, promotions and key project introductions of cross-border e-commerce. It strives to create sound environment for and draw attentions to enterprises of cross-border e-commerce, pushing the industry to develop in a healthy and fast manner.

To summarize, the Policy underscores the agglomerated development and the driving effect of leading enterprises, stresses the integrated development of online and offline transactions, give play the advantages of Chang’an freight train to the Belt and Road and grant subsidies to logistics carrying goods of cross-border e-commerce. By exploring the way of ensuring enterprises to insure ECI, it tries to build safe and reliable cross-border e-commerce. Again, Xi’an makes full efforts to forge sound environment and gain popularity for promoting the industry to develop in a healthy and fast manner.

Related information

“Innovation pioneering units” takes opportunities to promote the high-quality development of foreign trade

At the CXCECPA launching ceremony, XITLSP, Airport New City and Qujiang New District were listed as the first batch of “innovation pioneering units”. The responsible official for units held that they will seize the new opportunities brought about by CXCECPA to promote the high-quality development of cross-border e-commerce in Xi’an.

An official from XITLSP noted that the launching of CXCECPA will fully give play the advantages of Xi’an in geographical location, transportation, market and information, adjusting its industrial structure and promoting economic transformation & upgrading. The move facilitates the construction of Xi’an as a new start point for the economic belt of the Silk Road and as a joint city for New Eurasian Land Bridge. In addition, the launching of CXCECPA will also encourage start-ups and innovation by the public, create jobs, boost demands and build new economic growth poles, contributing the endeavors the city has been making to build itself into a new inland highland for open-up and reform. XITLSP, in turn, will promote greater trades with better logistic supports, fully serving the development plan of China and play a demonstrating role in shaping itself as a new inland port for open-up.

A managing official from Airport New City argued that as one of the pioneering units, Airport New City has been fully involving in the national effort for promoting cross-border e-commerce development. With its radiating advantages in air freights, Airport New City, which also serves as a road transportation hub, will penetrate into international trade on a bigger and wider platform. Centering on “adjacent to airport + bonded + cross border + entry port”, Airport New City is deepening economic cooperation with countries alongside the Belt and Road, striving to be a vibrant, innovate and diving place of cross-border e-commerce both in China and in the world.

A responsible official from Qujiang New District, responding to the target and demands of CXCECPA, maintained that his district, working on contents including think-tank, research institutes, talent system and industrial upgrading, vows to forge a demonstration park for cross-border e-commerce with the integration of “government service, production, university, research with application”. By hatching a well-functioned business environment, an increasing number of cross-border e-commerce enterprises have been relocating in QDC. The district has jointly established labs with universities to cultivate more than 10,000 talents, incubate college student entrepreneurial teams and builds a state-level demonstration park in cross-border e-commerce, making the industry a new engine to drive foreign trade and open economy of Qujiang New District.

Extended reading

Enterprises contribute to cross-border e-commerce development in Xi’an

At the CXCECPA launching ceremony & press conference, enterprise representatives including Alibaba, and also presented the event, contributing their wisdoms to develop CXCECPA.

Lu Xiaoli
Managing Director of Northwest Region, the Department for International Trade of Medium & Small Enterprises, Alibaba: facilitating leading industries and enterprises to develop from northwest China to the whole world

Mr. Lu noted that his department is dedicating to promoting the development of small and medium enterprises. In the following efforts, his department will fully work on upgrading foreign trade enterprises and helping them step to overseas market with online service by enhancing their awareness on Internet, improving their management skills, building their teams, forging their enterprises cultures and training their talents, promoting leading industries, industries with ethic features and outstanding enterprises to reach global market. 

Liu Wei
Deputy General Manager of Northwest Region, JDcom: setting up cross-border e-commerce flagship stores in Chang’an freight train

Liu introduced that will carry out deep cooperation with cross-border e-commerce enterprises in Xi’an to help the latter develop better, bringing new improvements to the industry. Online Chang’an flagship stores will be set up in to sell cross-border e-commerce goods. What is more, the well organized online promotions will expand the influence of cross-border e-commerce enterprises in Xi’an nationwide. “Chang’an” directly own store will be set up with well selected products from cross-border e-commerce enterprises, assisting them to improve sales volume.

Wang Chonglun
Senior Supervisor of the Department of Public Affairs, Investing more in Shaanxi and giving full support to CXCECPA

Mr. Wang noted that, as a leading B2B cross-border e-commerce platform, has been working very hard in Shaanxi. The commencement of CXCECPA offers huge opportunities for related industries. In response, will also provide a series of preferential policies to allocate more resources for local enterprises of cross-border e-commerce. In addition, will open green channel for reviewing applications from enterprises in Xi’an and Shaanxi, helping inspired small and medium enterprises conduct online businesses as soon as possible. After the approved members stationed in, they will enjoy 50% commission discount for 1~3 months, and 80% for 4~6 years. Still, they will also enjoy policy supports in online store decoration and engine search.

CXCECPA assumes 14 tasks

1. Striving to build and improve “two platforms and six systems”

Two platforms: online comprehensive service platform, off-line comprehensive supporting platform
Six systems: information sharing system, financial service system, intelligent logistic system, e-commerce credit system, statistical monitoring system and risk prevention & control system

2. Establishing a cross-border e-commerce information management mechanism

Information exchange, connection and communication between supervision agencies, local governments, financial agencies, e-commerce enterprises and logistic enterprises will be actively promoted, and a traceable management mode for cross-border e-commerce will be built.

3. Innovating and improving customs supervision

Customs supervision service and quality & safety supervision mechanism accommodating cross-border e-commerce will be made; and related account and inventory management will be adopted and improved.

4. Making customs clearance of cross-border e-commerce easier

Enterprise credit rating management and risk classification method will be explored to build a risk-oriented supervision mode

5. Innovating foreign exchange revenue & spending and settlement & sales management

Qualified third party payment agencies to effect exchange payments and settlements are encouraged and supported, and insurance agencies are encouraged to present new types of insurance covering cross-border e-commerce.

6. Building reliable transaction environment for cross-border e-commerce

Enterprise credit database will be built, credit supervision by types will be explored and credit negative list system will be established.

7. Promoting the agglomerated development of cross-border e-commerce

A number of cross-border e-commerce parks with striking features, well functions, agglomerated development and full vibrancy will be constructed. Renowned cross-border e-commerce and supply chain service platforms are encouraged to set up their headquarters or regional/functional headquarters in the parks.

8. Improving port business environment

Inspection and quarantine procedures for fresh agricultural products in cross-border e-commerce will be improved on condition that the risks are controllable, and more convenient port services will be provide.

9. Accelerating the matching industrial chain construction of cross-border e-commerce

Comprehensive service enterprises for foreign trade will be cultivated and introduced. Cross-border e-commerce enterprises are supported to erect their brands, and are encouraged to register trademarks outside China.

10. Giving play of “One-for-all” public service platform for cross-border e-commerce will be given play

“One station” service comprising of customs clearance, tax and remittance will be provided for cross-border e-commerce enterprises, and “one registration for information sharing and supervision mutual recognition” will be promoted.

11. Building greater sea, land and air channels for cross-border e-commerce logistic channels

Well integrated express delivery system integrating air, rail, road and sea shipments will be developed and new modes including “Chang’an freight train + cross-border e-commerce” and “greater channels + merchant base” will be explored.

12. Improving warehousing and logistic services

Logistic and express delivery enterprises in China are encouraged to connect with logistic warehousing centers for cross-border e-commerce, pushing the traditional logistics and inventory to develop in a professional, scaled and intelligent distribution manner.

13. Completing marketing system for cross-border e-commerce

O2O experience and direct sales stores will be opened in major business circles, communities and comprehensive bonded areas. Cross-border e-commerce will be encouraged to set up overseas warehouses and exhibition centers (pavilions). Pre- and after-sales service systems will be improved.

14. Enhancing entrepreneurial environment of cross-border e-commerce

A dense cross-border e-commerce entrepreneurial culture will be promoted to attract more talents to operate business in Xi’an, building comprehensive pilot areas into main battlefields for business startups and innovations by the general public, and trial fields for policies, systems, supervisions and services.


[Source:Xi’an Evening]