Amazon inks deal to enter Shanghai's free trade zone

Thursday, 21 August 2014
US online giant Amazon has signed a deal which will allow the company to introduce its global e-commerce directly to Chinese consumers, in a move which will help the e-tailer compete against rival internet giants Alibaba Group Holding and Beijing-based

On Wednesday, Amazon announced the start of a new strategic partnership with the Shanghai Free Trade Zone (FTZ), which will open the company's global platforms to Chinese shoppers by allowing them to purchase international products as imported goods and vice versa. The deal will see Amazon opening a logistics warehouse in Shanghai, to help handle the export of goods from Chinese retailers.

“I look forward to working with our Shanghai partners to realise the incredible opportunity of developing the best cross-border shopping experience possible for not only customers in China but also around the world and establishing Shanghai as a recognized international cross-border e-commerce centre,” said Diego Piacentini, Amazon's senior vice president of International Consumer Business, to Reuters.

The agreement will allow Amazon to have greater freedom with cross-border payments and let the giant use the trade free zone to experiment with financial modernization, according to the statement. The company did not reveal when it will begin operations within the free trade zone, which is has more relaxed export and import regulations and rules than the rest of China.

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