With 2,000 overseas warehouses, Chinese goods reach global buyers faster

Aerial photo taken on Jan. 2, 2022 shows a factory building and overseas warehouse project at the Yangpu Bonded Port Area in the Yangpu Economic Development Zone, south China's Hainan Province. (Xinhua/Pu Xiaoxu)

As a new type of international trade, cross-border e-commerce by Chinese businesses has grown significantly in recent years. Overseas warehouses, as a basic infrastructure of international e-commerce, play an active role in cutting costs, boosting efficiency, and ensuring supply chains. According to the Ministry of Commerce, China's overseas warehouses numbered some 2,000 by 2021, covering more than 16 million square meters.

The overseas warehouse refers to storage facilities established abroad. Besides goods storage, transit, sorting, packaging, processing and others, overseas warehouses also provided value-added services such as ordering, customs affairs, goods exchange, financing and overseas distribution. They mainly served domestic manufacturers, brand owners and traders.

Overseas warehouses stand out for quick delivery and goods exchange. Hong Yong, associate researcher at the Chinese Academy of International Trade and Economic Cooperation, said by transporting goods to overseas warehouses in advance, Chinese merchants have made it much easier for local consumers to receive or return their ordered goods.

AliExpress and Cainiao Logistics have built over 20 warehouses in 11 countries and regions, covering more than 860,000 square meters. Via AliExpress, Chinese goods now reach the European market in a minimum of two days. In the second half of this year, it will insure that all ordered goods will reach European and American countries within 5 days. AliExpress also began tapping the emerging markets like Mexico and Israel with improved efficiency and reduced costs.

Li Xingqian, director of the Foreign Trade Department of the Chinese Ministry of Commerce, said industrial standards for the parties involved will be steadily made, adding overseas warehouses should increase their digital and smart facilities. And qualified financial institutions will be encouraged to launch financing and credit products to support international e-commerce.

Reporting by Xu Peiyu (China Daily); Translating by Guo Yao