Shanghai’s Free Trade Zone is now to allow foreign investors to fully own eCommerce businesses active in China rather than be limited to a holding of 55 per cent with a local partner holding the remaining 45 per cent. The new policy removes a major block for overseas investors many of which have limited their investments in China due to the strict controls. Shanghai’s Free Trade Zone currently accommodates some 12,000 businesses including around 1600 which are majority owned by foreign entities.
With its 330 million online shoppers, the Chinese eCommerce market presents a massive opportunity for the likes of Amazon as well as its smaller counterparts around the world.
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