China greenlights 16 new cross-border ecommerce pilot zones including Hainan in trade push

CHINA. In a key legislative development, the Office of the State Council has approved the establishment of 16 new cross-border ecommerce comprehensive pilot zones across China, including Hainan Island.

The approval marks a significant step in China’s push to reinforce its cross-border ecommerce capabilities, a vital element in the country’s foreign trade. We will bring you analysis of the repercussions in coming days.

In an official announcement, the State Council said the initiative is aligned with China’s broader goal to enhance its digital economy and international trade capabilities.

The approval is as follows:

• To establish cross-border ecommerce comprehensive pilot zones in the entirety of Hainan Island and 15 cities (regions), including Qinhuangdao, Baoding, Erenhot, Dandong, Chuzhou, Sanming, Kaifeng, Xinxiang, Ezhou, Shaoyang, Wuzhou, Beihai, Fangchenggang, Guang’an and the Bortala Mongol Autonomous Prefecture. These zones shall be officially named ‘China (City/Region Name) Cross-Border E-Commerce Comprehensive Pilot Zone’.

The specific implementation plans shall be formulated and issued by the respective provincial governments where these zones are located. Concurrently, the previously established cross-border ecommerce comprehensive pilot zones in Haikou, Sanya and Alashankou will be revoked.

• The construction of the cross-border ecommerce comprehensive pilot zone should be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implementing the essence of the 20th National Congress of the Communist Party of China and the Second and Third Plenary Sessions of the 20th Central Committee, and follow the decisions and arrangements of the Party Central Committee and the State Council.

It should adhere to the general tone of “seeking progress while maintaining stability”; fully and accurately implement the new development concept; accelerate the construction of a new development paradigm; deepen reforms and opening up; and drive innovation-led development.

The experience and methods from successful pilot zones should be replicated and promoted, leveraging cross-border ecommerce to help traditional industries upgrade, promote digital transformation, and boost foreign trade to accelerate efforts in transforming China into a strong trading nation.

It is essential to resolutely implement the holistic approach to national security, balance development and security, and adhere to regulating while developing and developing while regulating. It is imperative to safeguard personal information rights and interests, and create a favourable business environment where all types of market entities can compete fairly.

• The governments of relevant provinces (autonomous regions) shall effectively strengthen organisational leadership in the development of the comprehensive pilot zones, improve mechanisms, clarify responsibilities and ensure accountability to advance the construction of the zones in a well-structured, orderly and efficient manner. In accordance with pilot requirements, they shall promptly refine specific implementation plans and ensure their effective execution.

Further efforts shall be made to detail trial tasks, prioritise key areas and drive innovation, fully leveraging the market’s decisive role in resource allocation. Social resources should be effectively guided, and public resources rationally allocated, to ensure steady progress in the zones’ development. A strong cross-border ecommerce information management mechanism must be established, with relevant electronic data promptly shared to meet regulatory needs.

Regular reports on work plans, pilot experiences and outcomes shall be submitted to the Ministry of Commerce and other relevant departments, striving for new breakthroughs in improving institutional mechanisms that foster cross-border ecommerce growth and strengthening supporting infrastructure. Major policies and construction projects related to the zones must undergo approval in accordance with prescribed procedures.

• Relevant departments under the State Council shall strengthen coordination, guidance and policy support for the comprehensive pilot zones to fully realise their role. Adhering to the principles of encouraging innovation while maintaining prudent tolerance, and focusing on both goal-oriented and problem-solving approaches, efforts shall be intensified to enhance collaboration and explore innovations in key areas of business-to-business cross-border ecommerce.

These include technical standards, business processes, regulatory models and digital infrastructure. Additional supportive measures shall be researched and introduced to create a favourable environment for the development of the pilot zones, thereby better facilitating and regulating the growth of the cross-border ecommerce industry.

The cross-border ecommerce statistical system shall be further improved, implementing supportive policies such as exempting retail export goods within the pilot zones from value-added tax  and consumption tax in accordance with regulations. Enterprises may opt for verified-assessment collection of corporate income tax.

Cities (regions) hosting the pilot zones that meet customs supervision requirements shall automatically qualify for retail import policies related to cross-border ecommerce. Support shall be extended for enterprises to jointly establish and share overseas warehouses.

The Ministry of Commerce shall take the lead in overall coordination, progress tracking, analysis and supervision, establishing a sound evaluation and exit mechanism to incentivise excellence and eliminate underperformance. In collaboration with relevant departments, it shall promptly summarise and promote pilot experiences, reporting major issues and developments to the State Council in a timely manner.