China backs cross-border e-commerce with new tax policies
China is planning to promote cross-border e-commerce as the country transforms from manufacturing to higher-value services to cater to increasing middle class.
As part of the strategy, the government of China has introduced certain guidelines including tax policies to boost domestic consumption and pilot projects to ease overseas payments, Reuters reported citing a statement posted on the central government's website www.gov.cn.
The e-commerce firms in the country will be backed by the government on international projects. The e-commerce retail exports will benefit from tax sweeteners.
The government will introduce credit insurance services and promote payments in yuan.
Figures released by Xinhua state that cross-border e-commerce picked around $3.32bn in annual sales volume since China piloted cross-border foreign exchange payments in 2013.
Last week, the government announced plans to allow full foreign ownership of some e-commerce business to increase competition in the market.