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. RMB internationalization accelerated in 2009 when China established the dim sum bond market and expanded Cross-Border Trade RMB Settlement Pilot Project, which helps establish pools of offshore RMB liquidity. Cross border e-commerce is defined as import and export activities of cross-border trade conducted through e-commerce methods by transaction subjects from different customs borders.It is mainly classified into B2B and B2C. Banks can now handle the foreign exchange relating to the trade of goods and services for enterprises with good credit, according to three principles of “understanding customers”, “understanding business,” and “due diligence.”. Cross-border trade in Heihe, China's northernmost free trade area adjacent to Russia's Blagoveshchensk, has remained stable this year. 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"); In France, cross border purchases are the fastest growing ecommerce segment with nearly half of all French consumers buying from cross border merchant. This reform will give banks more flexibility in terms of the administrative formalities relating to foreign exchange. Previous Article « How to Stay Compliant under China’s New Foreign Investment Law, Next Article How to Use China’s Negative Lists and Foreign Investment Encouraged Catalogue ». Please contact firstname.lastname@example.org or visit our website at www.dezshira.com. All of this serves to reduce the trial-an… This is crucial for the overall stability of the macro economy. While tit-for-tat tariffs risk an all-out trade war between the U.S. and China (see footnote 1), trade "skirmishes" have sprung up in foreign investment. Despite COVID-19's impact, robust development in e-commerce has been a major boost for the local economy. 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. The cross-border exports value was worth 305.73 billion baht, down 9 per cent. It also further simplifies the use efficiency of foreign exchange funds as deposit and reduces the capital occupation of foreign investors. The cross-border import value was worth 218.63 billion baht, down 10.7 per cent. 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. China is the major rice export market for Myanmar. On March 15, the Chinese side of the cooperation center began to resume operations. According to statistics released by the General Administration of Customs in October, China's foreign trade maintained steady performance in the first three quarters of this year. 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. There are 3 kinds of taxes here: Taxes: This is the “variable” taxes that the government puts on the goods. Another common question is: who handles currency conversion when conducting cross-border trade with China? Renminbi-denominated cross-border trade settlement hit 633.8 billion yuan (about 97.06 billion U.S. dollars) in November, central bank data showed Wednesday. 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. 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. China’s crackdown on daigou is part of its moves to strengthen e-commerce regulation and better control the rapidly expanding sector. With the rise of Alipay and WeChat Payment, there are now two clear alternatives: Alipay cross-border and WeChat Payment cross-border. "There is a trend towards more direct shipping out of China through digital cross-border shopping channels, which helps alleviate some of the downtrend in Chinese exports driven by the trade … Sorry, your blog cannot share posts by email. For Tmall Global, specifically, more than 80% of the brands that we currently sell made their China debut on the platform. 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. including the most recent legal, tax and accounting changes that affect your business. China Briefing is produced by Dezan Shira & Associates. The reform will expand the scope of the pilot scheme to cover six new free trade zones established in 2019 and the whole jurisdiction of Shanghai. A significant part of China-Pakistan cross-border trade falls within the category of shadow economy. co-released the updated version of “Positive List for Commodities Traded through Cross-Border E-Commerce (2018)”, under which 63 new items categories were added to the positive list for cross-border trade… "E-commerce trade volume reached about 1 billion yuan between January and September. The reporting processes on foreign exchange businesses for trade in goods will be improved. 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. Get an overview on the players in the Chinese cross-border e-commerce ecosystem and learn how to choose the right trade partner. Despite the halt of global physical trade fairs due to the COVID-19 pandemic, a surging international trade demand is observed. 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 Despite COVID-19's impact, robust development in e-commerce has been a major boost for the local economy. businesses establish, maintain, Cross-border e-commerce (CBEC) has been used to supply Chinese consumers for many years. As part of the “China Online Trade Fair Series”, DHgate, China’s leading B2B cross-border eCommerce marketplace, is organizing China (Suzhou) Online Trade Fair from November 26 th, 2020 to February 25 th, 2021. In this case an overseas legal entity imports the goods directly into China. "Given the increasing complexity on global financial markets, it is important to guard against the risks in cross-border capital flows and maintain financial stability. China to impose sanctions on U.S. officials over Hong Kong Nov 06,2020. China’s leaders emphasize the importance of increasing imports to facilitate both internal and external rebalancing. China's ambassador to the U.S. expects new momentum for China-U.S. relations in 2021 Nov 06,2020 The new rules reduce the processing time of transactions using the capital fund as it is no longer necessary to provide information before the settlement of the capital. Trade between the Pingtan Comprehensive Experimental Zone and Taiwan has continued smoothly, increasing 67 percent yearonyear in terms of package volume. 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 The number of foreign trade companies kept increasing. 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 … 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 … All countries have these various tax rates depending on the product. New zones will be developed to facilitate innovation in imports. Since the late-2000s, the People's Republic of China (PRC) has sought to internationalize its official currency, the Renminbi (RMB). Despite COVID-19's impact, robust development in e-commerce has been a major boost for the local economy. The cross-border exports value was worth 305.73 billion baht, down 9 per cent. Project contractors will be allowed to put their overseas funds under unified management. Yet it has been fairly unregulated in many aspects. Alibaba and e-commerce service provider Youzan both released their … The verification process of import payment of foreign exchange will be simplified. Cross-border eCommerce in China allows international companies to sell goods to Chinese consumers online through platforms such as Alibaba’s Tmall Global and Kaola. According to the announcement, restrictions placed upon the use of foreign exchange settlement in the domestic asset realization account will be removed. The consumer base for imported goods via cross-border e-commerce has also expanded rapidly. At present, this pilot scheme has been carried out in 12 free trade zones, and several provinces and cities, such as Fujian, Zhejiang, Jiangsu, Shenzhen. The previous requirements to report to SAFE for foreign exchange transactions during the counseling period have now been removed. The general principle is to maintain a macro-prudential policy while enhancing micro regulation," Li said. The cross-border RMB income obtained from foreign direct investment (FDI), cross-border financing, and overseas listing may also be directly used for payment within China. If the income declaration form of the to-be-verified account is required to be submitted to the foreign exchange bureau under the current rule, the enterprise may be exempted from this step in the future. "China has a vast domestic market, yet is also deeply integrated into the global economy. Banks operating in the Lingang New Area may directly handle RMB settlement in cross-border trade. The case-by-case basis registration of non-financial enterprises’ foreign debts with SAFE will now be cancelled under the pilot scheme – this will apply on a trial basis in Hainan province and the Guangdong-Hong Kong-Macao Greater Bay Area. The new measures took effect October 23, with the exception of the new online reporting system, which will commence January 1, 2020. The cross-border import value was worth 218.63 billion baht, down 10.7 per cent. 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. Our subscription service offers regular regulatory updates, By cross-border, I mean those channels such as Tmall Global or JD Worldwide, which allow foreign brands to sell to Chinese consumers from outside of mainland China, be … This rule will take effect January 1, 2020. Limits on the number of foreign currency accounts under capital accounts will be removed, to facilitate foreign exchange settlement under certain capital accounts. The new rules implement a pilot scheme that facilitates foreign exchange receipt and payment for service trade. Under the new rules, the channels, types of domestic credit assets, and scope of persons able to participate in the overseas transfer will be expanded in the pilot area within the Hainan Province and the Guangdong-Hong Kong-Macao Greater Bay Area.Foreign investors will now be able to carry out cross-border transfers of non-performing assets and can use foreign capital to directly participate in China’s non-performing asset market – changes that will undoubtedly enrich the investment channel available to them. 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. 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.”. Since 2014, customs has regularly introduced new trade supervision methods, exploring innovative ways to help the industry develop in a well-regulated and systematic way. Non-bank debtors can now go directly to the bank to cancel their foreign debt registration, instead of dealing with SAFE, thereby reducing the overall time needed for foreign debt deregistration. 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. RMB Cross-border Trade Settlement. 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. China’s crackdown on daigou is part of its moves to strengthen e-commerce regulation and better control the rapidly expanding sector. On February 2017, a pilot project for cross-border labor cooperation was launched in Dongxing, allowing for a greater influx of Vietnamese to work in Guangxi. PM Nguyen Xuan Phuc has ordered the resumption of cross-border trade with China to ensure economic activities are not affected by the coronavirus epidemic. Cross-border eCommerce in China allows international companies to sell goods to Chinese consumers online through platforms such as Alibaba’s Tmall Global and Kaola. Eligible enterprises in the pilot area can use capital fund, foreign debt, and funds raised by overseas listing for domestic payment without providing supporting documents to the bank to prove the authenticity of the transaction on case-by-case basis before the foreign exchange settlement. One thing we did not talk about is the cross-border ecommerce policy, how it’s a little bit more favorable compared to the more traditional general trade direct import process. US-China cross-border investments hit 5-year low as decoupling deepens amid trade war Investment between the US and China plunged 18 per cent to US$13 billion in … Imports including agricultural products, daily consumer goods, equipment and parts will be increased to meet domestic demand. E-commerce in China has become part of Chinese consumers daily life. Cross-border e-commerce (CBEC) – activities of purchasing or selling products via online shopping across national borders – is gaining momentum in China. US-China cross-border investments hit 5-year low as decoupling deepens amid trade war Investment between the US and China plunged 18 per cent to … However, transit trade value with China expanded during the first five months of 2020 at 90.74 billion baht, up 15.74 per cent year-on-year. "The renminbi exchange rate needs to be kept basically stable at an adaptive and equilibrium level, and foreign exchange reserves at a reasonable level. Under the new rules, enterprises can decide whether to open a to-be-verified account for export earnings. Trade volume of China's export cross-border e-commerce players 2011-2019 Number of cross-border online shoppers in China 2016-2020 Growth rate of cross-border online shoppers in China … 010020070750000000000000011102351384971941. In 2018, 13 ministries and commissions of China including CFDA, MOF, GAC, etc. Enterprises may now be under an even stricter scanner with initial transactions subject to more detailed investigation from the bank before a trusted relationship is built between the bank and the enterprises. What is important now is that the many policies that have been introduced will be fully delivered, in an effort to achieve the goal we set early this year of ensuring the steady growth and raising the quality of foreign trade," Li said. A significant part of China-Pakistan cross-border trade falls within the category of shadow economy. 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. The overseas fund centralized management account shall comply with the laws and regulations of the country (or region) where the overseas account is located. Measures on keeping foreign trade stable were adopted at the meeting. Foreign firms engaged in non-investment businesses will be allowed to make equity investments on the mainland with their capital funds. 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. Regarding the scope of the pilot scheme, no specific cities were mentioned; instead, the application of the policy will depend on the actual needs of the locality to be decided and announced later by the government bureau. The pilot program that facilitates revenue payments under capital accounts will be expanded. The new rules speed up the equity transactions between Chinese businesses and foreign investors. Enterprises will make their own decisions on whether or not to set up verification accounts. Post was not sent - check your email addresses! "It is important to keep foreign trade and investment stable under the current situation by taking further steps in opening-up," Li said. 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. As incomes in the country have risen, so has the demand for imported goods. Registration for writing off companies' borrowings from foreign lenders will be delegated to banks. Of … Most of the provisions of this article will take effect on the issuing date, except the new online foreign exchange reporting system for businesses engaged in the trade of goods, which will take effect from January 1, 2020. The order, issued Thursday, said cargo train and aircraft could also continue operating between the two countries as long as safety measures are conducted to prevent spread of the nCoV. Non-financial enterprises within the pilot area can now register foreign debts up to twice their net assets at the local foreign exchange bureau. 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. 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. Registration for the list of foreign exchange receipts and payments for trade will be facilitated for enterprises and their subsidiaries. According to SAFE, it is expected that this policy will benefit more than 95 percent of cross-border e-commerce enterprise. The decision was adopted on Wednesday at the State Council's executive meeting, chaired by Premier Li Keqiang. It sets lower entry standards for overseas brands to benefit from the Chinese market, as the platforms help them to develop marketing strategies, sales channels, and product mix based on their better understanding of Chinese consumers. Xu Zhixian is … 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. Crossborder # trade in Pingtan, Fujian province, has experienced doubledigit growth despite the # COVID_ 19. 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. and grow their operations. To stimulate imports and consumption, Beijing tested a series of policies, starting in the Shanghai Free Trade Zone (FTZ) in 2015, to facilitate cross-border e-commerce trade. 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. We highlight and break down the six measures for cross-border trade and cross-border investment in this article. Between 2016 and 2018, China’s score of Trade Across Borders was stagnant at 69.91. However, SAFE will more closely monitor the use of funds during and after this process. Alibaba and e-commerce service provider Youzan both released their earnings reports for … Cross-Border E-Commerce Trade. Crossborder # trade in Pingtan, Fujian province, has experienced doubledigit growth despite the # COVID_ 19. Another 141,000 got newly registered, up by 7.7 percent year-on-year. Procedures of receipts and payments of relevant funds will be simplified for micro and small cross-border e-commerce companies. The new rules therefore offer more flexibility in the investment structure for foreign investors. BEIJING, Nov. 4 (Xinhua) -- Chinese President Xi Jinping said Wednesday that the country will introduce a negative list for cross-border services trade. Xu Zhixian is the manager of a duty-free shop in the center. There is much pressure on foreign trade. As an important border port, Dongxing provides a major trade link between China and Vietnam as well as other ASEAN countries. 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. Cross-border trade and FOREX. While some of the provisions will apply nationwide, many others will apply solely in the pilot area. Statistics from the State Administration of Foreign Exchanges on October 6 show that China's foreign exchange reserves stood at 3.0924 trillion U.S. dollars by the end of September, up by 0.6 percent from the beginning of this year.
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