As part of the initiative, wholly-foreign-owned companies can now operate within this zone in the online data processing and transaction handling industries.
Telecommunication authorities in Shanghai will take charge of the pilot scheme and regulate and supervise foreign investors, www.ibtimes.co.uk reports. The entry of foreign players in the Shanghai FTZ is expected to trigger a gradual opening to overseas capital in ecommerce sector across the nation. Previously, foreign companies were required to make joint ventures with local companies to operate ecommerce websites.
The Shanghai FTZ was launched in September 2013 to act as a testing ground for economic reforms by Chinas government as it seeks to boost growth and productivity. More than 12,000 companies have established their offices in the zone, including 1,677 foreign-funded firms. Since the launch of the FTZ, China implemented 27 economic reform measures in other parts of China, according to news agency Xinhua cited by ibtimes.co.uk. The measures are related to areas such as business registration, cross-border financing and investment, and customs clearance.
The total value of the Chinese ecommerce transaction was estimated to reach USD 1.95 trillion (CNY 12 trillion) in 2014, with a 20% y-o-y increase, recent findings reveal.
Check out our Cross-border Ecommerce Research section here for more info on country-specific ecommerce facts and figures, preferred payment methods, risk and fraud, as well as ecommerce legislation and regulation in China.
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