This is eBay’s first cooperative agreement with the government of China and is the company’s second subsidiary in the country, following Shanghai.
eBay also made a deal with Linca Industrial (Fujian) Group to build a cross-border ecommerce industrial park in Fuzhou. This will be the first industrial park in the capital of east China’s Fujian Province with a full industry chain to focus on cross-border ecommerce in China.
The agreement is the result of a proposal from April 2017 between Fuzhou City government, the Department of Commerce of Fujian Province, and eBay. The first stage of the park is about 30,000 square meters of development including a logistics centre, business incubators, talent training center, payment service support center, and other related business services.
An eBay cross-border ecommerce institute was also established, being jointly organized by the Fujian Pilot Free Trade Zone, eBay, and Fujian Business University.
This particular venture is about ecommerce cross-border trade. According to a study by Accenture and Alibaba, China ecommerce cross-border trade volume may reach USD 994 billion by 2020. That is a significant portion of the current overall trade volume of all goods and services which WTO places at over USD 4 trillion.
eBay marketplace continues to try to distance itself from other marketplaces by stating that it doesn’t compete with sellers. But by investing into production and logistics infrastructure in China and training people to build up ecommerce companies to compete on a global scale, it seems they are not just a marketplace, but actively involved in developing cross-border trade from China.
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