Amazon enters Shanghai free trade zone to boost offering in China

Whatsapp News

Amazon enters Shanghai free trade zone to boost offering in ChinaBEIJING – will set up shop in China’ Shanghai free zone, the company said on Wednesday, aiming to take advantage less stringent regulations to sell a wider range in the country.

The U.. online retailer’ move shows an intent only to remain in China but to beef up its presence in an e-commerce market dominated by Alibaba Group Holding and Beijing-based, the second-biggest player.

Amazon signed a memorandum cooperation to give Chinese access to its its supply chain and to help small and medium-sized enterprises in China to their to in other countries, the company said in an e-mailed .

Amazon did say when the company is likely to begin operations in the free zone, which enjoys more relaxed import and regulations the rest China.

The company is also pushing its Amazon Web Services (AWS) cloud computing business in China and said in December that the country will have its own AWS region to improve speeds for its mainly corporate .

However, persistent expansion has come at a cost, leaving Amazon with a $126 million net loss in the second quarter, up a loss of $7 million in the same period last year. The company also forecast an operating loss of between $810 million and $410 million for the third quarter to Sept. 30, up a $25 million loss a year ago. [eap_ad_2] ‘INCREDIBLE OPPORTUNITY’

“I look forward to working with our Shanghai partners to realize the incredible opportunity of developing the best cross- shopping experience possible for only customers in China but also around the world and establishing Shanghai as a recognized international cross- e-commerce center,” said Diego Piacentini, Amazon’ senior vice president of International Consumer Business.

But Amazon has also been hit by counterfeit goods that frequently plague companies in China, fashion to pharmaceuticals and even food and drink.

In March Amazon said will strengthen regulation of its online sales channels and had closed down a third-party store after state media criticized for selling cosmetics.

Amazon’s move to the free trade zone comes nearly a year after the zone was launched, attracting attention from overseas businesses and hailed as one of China’s boldest reforms in decades. However, there has been a lack of specific policy details since the initial fanfare.

banks, such as Citigroup and HSBC Holdings have set up branches in the zone, but many companies have been reluctant to follow suit, citing a lack of clarity on what will and will not be allowed in the zone. (Reuters)[eap_ad_3]