The proposal for developing a State-level cross-border e-commerce pilot zone in Yuncheng was approved by the State Council on Nov 24, together with another 32 cities and regions that put forward the same application.

This marks the establishment of the China (Yuncheng) Cross-Border E-Commerce Comprehensive Pilot Zone, the third such State-level zone in Shanxi province and following those set up in the cities of Taiyuan and Datong.

Local officials said the zone's establishment is confirmation of the booming foreign trade business in Yuncheng and is expected to make the city a new engine for Shanxi's opening-up and international economic cooperation.

According to the requirements of the State Council, the zone should be designed to accumulate new experiences in online cross-border transactions, logistics, payment, settlement, customs clearance and tariff rebates.

The pilot zone would be encouraged to implement innovative practices relating to governance, management, service and synergic development, creating a beneficial ecosystem for cross-border e-commerce and cultivating a full industrial chain.

Yuncheng is among the most active players in Shanxi's international trade, which has laid a solid foundation for developing this new model of foreign trade.

The city's customs office said that during the first 10 months of the year, Yuncheng's foreign trade volume totaled 10.04 billion yuan ($1.44 billion), growing 47.2 percent year-on-year. The increase ranked it first among all the cities in Shanxi.

Its imports hit 5.12 billion yuan during the period, up 21.4 percent. Its exports reached 4.92 billion yuan, rising 88.9 percent.

Both the State-owned and privately run businesses are top players in Yuncheng's foreign trade. They respectively accounted for roughly half of Yuncheng's imports and exports, the city's customs office said.

For Shanxi as a whole, the province has issued a number of preferential policies to support cross-border e-commerce.

One of them is the establishment of overseas warehouses for cross-border e-commerce transactions. Under this model, imported goods are first transported to overseas warehouses and then transactions will be made online between suppliers and buyers.

Industry insiders said such a method can allow deliveries to reach buyers more rapidly, thus improving the efficiency of transactions.

The first deal of overseas warehouse delivery was made between Taiyuan-based Huayuan Land Port Cross-Border E-Commerce Corp and Shangzhuo, a glass manufacturer based in Qixian county, on Oct 16. Huayuan then began to transport Shangzhuo's products to its overseas warehouses in Long Beach, California, in the United States.Yan

Jie and Meng Ting contributed to this story.
By YUAN SHENGGAO