THE government will delay enforcing tougher rules on the country’s fast-growing cross-border retail market until the end of 2018, a boost for global firms that have been tapping the round-about route into the world’s No. 2 economy. Cross border-retail sales, goods either shipped directly to shoppers in China from overseas or from bonded warehouses in free-trade zones within China, are expected to hit 758 billion yuan (US$115.4 billion) by 2018, according to data from McKinsey & Co. and iResearch. Planned new rules will broadly increase taxes and regulations on products sold via cross-border channels, but Chinese authorities will extend a transition phase for implementation by a year, the State Council said late Wednesday, giving retailers more time to prepare and adapt. The delay of the tougher rules signals broader support from the government for cross-border retail, according to analysts. “We need to enable the healthy development of cross-border e-commerce and speed up the growth of new engines, making the foreign trade sector more adaptive to new circumstances,” Xinhua quoted Premier Li Keqiang as saying. “The prospect of cross-border e-commerce is very bright.” China sparked widespread confusion among retailers and brands in the cross-border shopping market in 2016 with increased taxes and abrupt bans on some goods. It later rowed back on some measures and introduced a transition period for others. (SD-Agencies) |