Chinese Government promotes e-commerce

In a move to increase domestic consumption and services, the Chinese government recently outlined plans to make online sales account for at least 10 per cent of sales nationwide.


Chinese Government promotes e-commerce


In a move to increase domestic consumption and services, the Chinese government recently outlined plans to make online sales account for at least 10 per cent of sales nationwide. According to Hangzhou-based China e-Business Research Center, online retail transactions accounted for 6.8 per cent of all retail sales in China for the first half of 2013. By the end of this year, it is expected online retail’s share will increase to seven per cent of total retail sales.

China’s economy has largely been export-driven but as the growth for exports wane and some manufacturing shifts to other locations, China has turned its attention to the Chinese consumer to energise its economy with e-commerce has been viewed as a means to reach consumers faster and more efficiently.

As such, China’s Ministry of Commerce announced plans to provide policy and financial support for businesses conducting e-commerce cross-border, as well as encourage domestic e-commerce retailers to establish overseas subsidiaries and improve offshore warehousing and customer service. The Ministry will also provide incentives to small and mid-sized businesses to establish online operations.