Initiatives support global trade recovery and
accelerate digitization at the world’s largest wholesale market
Alibaba Group and the municipal government of Yiwu, Zhejiang
Province in China, have announced plans to develop a Digitized
Comprehensive Bonded Zone under the eWTP (electronic World Trade
Platform) framework, making cross-border e-commerce more accessible
to small and medium-sized enterprises (SMEs) at the world’s largest
wholesale market.
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Daniel Zhang, Chairman and Chief
Executive Officer of Alibaba Group, at the signing ceremony marking
the establishment of a joint venture to develop the eWTP
cross-border trade service platform of Yiwu (Photo: Business
Wire)
The planned expansion of the strategic collaboration between
Alibaba and Yiwu marks the first anniversary of the city’s
establishment as an eWTP hub. The partners launched the hub last
year to digitize Yiwu’s commerce infrastructure and enable new
trade flows and opportunities. The expansion is especially timely,
supporting the restoration and recovery of global trade under the
Covid-19 pandemic.
A core part of the new initiatives is a joint venture between
Alibaba Group and Yiwu-based China Commodities City Group to
develop the eWTP cross-border trade service platform of Yiwu. This
one-stop platform will offer SMEs digitized trade services,
including customs clearance, foreign exchange settlement and tax
procedures. It will be the third trade service platform established
at an eWTP Hub, following the launch of trade platforms in
Hangzhou, China and Liège, Belgium.
“With its advantages as a product and SME hub as well as its
existing trade infrastructure, Yiwu is the definition of strategic
planning for enabling businesses to navigate the digital age.
Alibaba will work together with Yiwu to further facilitate the
city’s transformation into a digitized small commodities trading
hub and digitized port as a step toward the collective goal of
complete digitization of global trade,” said Daniel Zhang, Chairman
and Chief Executive Officer of Alibaba Group.
Pioneering a New Retail approach to cross-border
trade
The joint venture will also help develop the Yiwu Comprehensive
Bonded Zone1, ratified by China’s State Council in April this year,
into one of the country’s most-digitized trade zones. A highlight
of the zone will be the launch of an offline exhibition area to
showcase cross-border products, scheduled for pilot launch in
mid-September.
Inspired by Alibaba’s groundbreaking New Retail concept,
consumers shopping at the showcase will be able to see and touch a
variety of imported products offered by merchants on and beyond
Alibaba’s platforms. Shoppers can also immediately pay for and
bring home those imported products. This cross-border shopping area
will initially occupy a floor area of around 20,000 square meters,
with the potential for significant expansion.
Supporting Yiwu’s transition into an import distribution
hub
To cater to rising demand from Chinese consumers for
high-quality international products, Yiwu is progressing well in
its transformation into a distribution hub for imported consumer
goods. To this end, Alibaba Group and the municipal government of
Yiwu have also announced the establishment of the eWTP Yiwu Digital
Customs Clearance Port. The digital customs clearance system will
enable overseas merchants exporting products to China in smaller
quantities via international parcel delivery to complete and clear
customs processes online, getting parcels to customers in a
more-timely fashion.
Setting Yiwu SMEs on a path of growth
In the year since the eWTP’s Yiwu launch, an increasing number
of SMEs have found success exporting products online. According to
Alibaba.com, Alibaba’s platform for global business-to-business
trade, its Yiwu-based supplier members have attracted business
opportunities from close to three million active buyers over the
past 12 months, generating 82% more online transactions on a
year-on-year basis.
Under the eWTP framework, Yiwu businesses have access to their
counterparts in various other eWTP hubs, allowing them to explore
even more cross-border opportunities.
“We believe a digitized trading world where all core aspects of
commerce are digitized is under formation. From merchants to
products, from order settlement to logistics, and from a container
to a receipt, everything is going to be inseparable from digital
technology. With our shared customer base and shared markets, Yiwu
and Alibaba will jointly usher in innovations in trade rules,
technology and trade models to serve our customers and markets
better and create better lives for consumers,” added Zhang.
Other initiatives by Alibaba to support SMEs in Yiwu, especially
to support the post-pandemic recovery phase for businesses, include
a solution to facilitate cross-border and foreign exchange
transactions for SMEs in partnership with the Zhejiang Chouzhou
Commercial Bank. A small commodities online trade show, part of
Alibaba.com’s series of 20 online exhibitions, will also be held to
attract five million international wholesalers to consider locally
produced items from Yiwu. This follows the recent opening of the
world’s largest digital exhibition featuring cross-border trade
products by Alibaba.com.
Initiated by Alibaba Group founder Jack Ma, the eWTP is a
private-sector-led, multi-stakeholder initiative that facilitates
public-private dialogue and collaboration to share best practices,
incubate new trade rules and foster a more-integrated policy and
business environment to help develop inclusive trade and the
digital economy. To date, Alibaba Group has joined forces with the
governments of Belgium, Malaysia, Rwanda, and Ethiopia as well as
Hangzhou and Yiwu in China to establish six eWTP hubs around the
world.
About Alibaba Group
Alibaba Group’s mission is to make it easy to do business
anywhere. The company aims to build the future infrastructure of
commerce. It envisions that its customers will meet, work and live
at Alibaba and that it will be a good company that lasts for 102
years.
About eWTP
eWTP (electronic World Trade Platform) is a private-sector-led,
multi-stakeholder initiative that facilitates public-private
dialogue and collaboration to share best practices, incubate new
trade rules, and foster a more integrated policy and business
environment to support the development of inclusive trade and the
digital economy.
The concept of eWTP was first initiated in 2016 by Jack Ma,
founder of Alibaba Group, and was accepted as a major policy
recommendation of the Business 20 (B20) and officially included in
the 2016 G20 Leaders’ Communique. The initiative aims to help small
to medium-sized enterprises (SMEs), women and youth by developing
policies and making it easier for them to leverage technology in
order to participate in global trade.
The development of eWTP is driven by businesses, with support
from governments. Businesses can create hubs for e-commerce, and
governments can work with businesses to create free trade zones for
cross-border e-commerce, develop new trade rules, share best
practices, and facilitate development of e-commerce infrastructure
and services. By promoting a comprehensive approach under the “4Ts”
of eWTP – trade, tourism, training and technology, the initiative
seeks to empower SMEs, to support the young generation and women,
to facilitate global consumption and to foster a more integrated,
inclusive environment for trade.
As of now, Alibaba Group has joined forces with the governments
of Belgium, Malaysia, Rwanda and Ethiopia as well as Hangzhou and
Yiwu in China to establish six eWTP hubs around the world with the
goal of enabling SMEs across the world to support global trade.
1Comprehensive bonded zones in China are specially-designated
commercial areas that feature favorable taxation and other
policies, under the supervision of customs officials.
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version on businesswire.com: https://www.businesswire.com/news/home/20200621005052/en/
Sovanna Fung Alibaba Group +852 9682 5581
sovannafung@alibaba-inc.com
Rico Ngai Alibaba Group +852 9725 9600
rico.ngai@alibaba-inc.com
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