Shanghai Takes Steps to Boost Foreign Trade Growth: Establishes Cross-Border E-Commerce Hub and Accelerates Exhibition Economy
In an effort to create a favorable environment for foreign trade, Shanghai has announced several initiatives to stimulate growth and enhance its position as a global trade hub. On July 20, the city issued the “Shanghai Action Plan for Promoting the High-quality Development of Cross-border E-commerce (2023-2025)” to further deepen the construction of the China (Shanghai) Cross-border E-commerce Comprehensive Pilot Zone. Additionally, Shanghai has released action plans centered around the convention and exhibition economy, with the aim of accelerating the city’s transformation into an international convention and exhibition capital.
The import and export of cross-border e-commerce in Shanghai has shown significant growth in the first half of this year, reaching 141.96 billion yuan, a year-on-year increase of 84%. To capitalize on this momentum, the “Action Plan” outlines key strategies to support cross-border e-commerce entities and foster the development of large-scale exports. It emphasizes the construction of cross-border e-commerce demonstration parks, the implementation of the “Excellent Products Overseas” action plan, and the optimization of customs clearance and logistics services to improve efficiency.
Furthermore, the plan highlights the importance of expanding international freight lines and logistics service capabilities. Shanghai aims to connect cross-border e-commerce companies with China-Europe trains and establish new international logistics channels. The city plans to build a cross-border e-commerce logistics matching service platform that leverages its seaports and airports, ultimately creating a nationwide hub that radiates to the world.
Technological empowerment and the construction of overseas warehouses are other key areas of focus outlined in the plan. Shanghai intends to create an improved business environment, optimize cross-border fund settlement services, and increase financial support.
“We will continue to support cross-border e-commerce RMB business, further leveraging its role in serving the real economy, promoting trade and investment facilitation, and supporting the development of new forms of foreign trade,” said Shi Liya, director of the cross-border RMB business department at the Shanghai Headquarters of the People’s Bank of China. Shanghai currently boasts 19 payment institutions that have completed the necessary filings for cross-border e-commerce RMB business, ranking among the top in the country. In the first half of this year, Shanghai’s payment institutions witnessed a year-on-year increase of 37.5% in RMB settlement for cross-border e-commerce, accounting for over 50% of domestic and foreign currency receipts and payments.
By 2025, Shanghai aims to become a leader in cross-border e-commerce in terms of main body level, professional services, innovation elements, and business environment. The city plans to establish a comprehensive functional hub for cross-border e-commerce with a high concentration of main bodies, efficient innovation of elements, and a complete industrial ecology.
In parallel, the exhibition economy also plays a crucial role in Shanghai’s efforts to stabilize its foreign trade environment. According to the recently released “Three-Year Action Plan for Promoting the High-Quality Development of Shanghai’s Convention and Exhibition Economy and Building an International Convention and Exhibition City (2023-2025),” the city aims to achieve a total annual exhibition area of approximately 22 million square meters by 2025. It also aims for international exhibitions to account for 80% of the total exhibition area and to host 50 exhibition projects with individual areas exceeding 100,000 square meters.
The plan further outlines the intention to cultivate more than 35 institutions certified by the International Association of the Exhibition Industry by 2025 and develop 2 to 3 exhibition groups with international competitiveness.
Zhang Guohua, deputy director of the Shanghai Municipal Commission of Commerce, noted that favorable policies for the exhibition economy have already been introduced this year. In the first half of the year, the total exhibition area reached 7.59 million square meters, surpassing 80% of the level seen in the same period in 2019. Shanghai plans to host exhibitions with a total area exceeding 8.8 million square meters in the second half of this year, aiming to surpass 90% of the 2019 level.
As Shanghai embarks on these ambitious plans, the city is positioning itself as a driving force in China’s foreign trade landscape. These initiatives are expected to consolidate Shanghai’s role as a global trade hub and bolster its reputation as a center for cross-border e-commerce and international exhibitions.
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