Beijing Bolsters Backing for Overseas E-Commerce Warehouses

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E-commerce goods bound for overseas are prepared to go through customs in Shanghai on Jan. 19. Photo: VCG

In recent years, Beijing has rolled out a series of policies that support the construction of warehouses overseas to boost the globalization of China’s e-commerce platforms amid slowing demand and ever greater competition in their home market.

The most recent such effort came in June when the Ministry of Commerce, along with eight other government agencies, issued a document encouraging the country’s local governments to set up dedicated industrial funds and offer tax reimbursement policies to help cross-border e-commerce companies build warehouses overseas.

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Beijing has implemented policies to support building overseas warehouses to boost e-commerce globalization amid home market competition.
The effort includes tax reimbursements and industrial funds, with significant growth expected in the e-commerce export warehousing market.
Despite strong demand, challenges remain such as high costs and long investment return cycles.

AI generated, for reference only

Who’s Who

Shenzhen Yuanchao Logistics Technology Co. Ltd.: Shenzhen Yuanchao Logistics Technology Co. Ltd. is a cross-border warehousing services provider co-founded by Liu Wei. The company has experienced double-digit month-on-month growth in orders since the end of 2021, indicating a strong demand among Chinese cross-border e-commerce companies for warehouses, particularly in Southeast Asia.

Mimacro Logistica SL: Mimacro Logistica SL is a warehousing services provider based in Madrid. According to Zhan Qing, a post-sales service manager at the company, an increasing number of Chinese e-commerce companies are building warehouses in Europe in response to growing competition in their home market.

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What Happened When

2016：: The central government work report delivered by then-Premier Li Keqiang identified building overseas-based warehouses as a key part of Beijing’s strategy to expand export volumes and offset an economic slowdown.

By the end of 2021：: Yuanchao Logistics Technology Co. Ltd. began seeing double-digit month-on-month growth in orders.

2023：: The Chinese market for overseas warehouses that serve the business-to-consumer export e-commerce supply chain is projected to grow from this year.

June 2024：: The Ministry of Commerce, along with eight other government agencies, issued a document encouraging the country’s local governments to set up dedicated industrial funds and offer tax reimbursement policies to help cross-border e-commerce companies build warehouses overseas.

AI generated, for reference only