Chinese e-commerce giant Alibaba will offer subsidies to small and medium-sized domestic exporters that complete transactions on its platform, the company announced on Tuesday.
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If exporters complete services including logistics, customs clearance and tax rebates through Alibaba's online platform OneTouch, they will get a maximum subsidy of 0.03 CNY, or less than half a U.S. cent, in cash for each 1 USD of transaction volume, Alibaba said.
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"The move is to integrate scattered services of small and medium-sized export enterprises via the platform, thus lowering down costs and breeding more profits," said Wu Minzhi, President of Alibaba's business-to-business (B2B) unit.
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Statistics released by Alibaba showed that for Chinese small export enterprises, spending on commodity circulation has taken up over 30 percent of total costs.
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"Logistics, customs clearance and tax rebates have consumed time and manpower of small and medium-sized export companies," said Wei Qiang, a manager in charge of Alibaba's foreign trade service sector.
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He said for banks, logistics companies and customs, the OneTouch platform serves as "a key client" by integrating tens of thousands of export-oriented enterprises.
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"As for those companies, convenient channels for export, financing and logistics could help them lower costs," he said.Â