Start the conversation
Implemented in September 2013, the SFTZ is the first-ever free trade zone in mainland China. It provides preferential treatment to foreign investors via relaxed import and export policies, and looser financial requirements compared to the rest of the country.
|Click to Enlarge|
This contrasts the stringent, prohibitive rules otherwise in place in the country. Historically, China's policy has been to encourage national brands over foreign ones, making it very difficult for outsiders to provide access to, market, and deliver their products there. For instance, since 2000, gaming consoles like Microsoft's Xbox have been banned for sale in China. But now, their sale is permitted within the SFTZ.
The new Amazon HQ will allow the world's largest online retailer to sell products from all over the world in China. Additionally, China will have a new platform to sell its products internationally. A new logistics warehouse will allow Amazon to export goods from localized producers.
According to Want China Times, Chinese buyers will be able to shop on Amazon's website designed for the local market. It will feature Chinese-language directions and prices in renminbi (yuan), or alternatively, customers can shop Amazon products via Kuajingtong.com – the cross-border e-commerce platform that the SFTZ launched in December that has the Chinese government's backing.
But AMZN – a company that seems to want to gain market share in every profitable nook and cranny – clearly has another aim besides widening its moat geographically…