The Beijing E-Commerce Aggregation Area, which will serve as an experimental zone for e-commerce promotion policies, was officially established in Tongzhou District on July 20.
Beijing's Deputy Mayor Cheng Hong said the area will help the local e-commerce industry to maintain its leading position in the country.
Cheng said that Beijing ranks first in the country in the numbers of Internet users. Beijing's existing information and capital flows along with its advanced logistics infrastructure provide e-commerce enterprises with exceptional development advantages. Furthermore, the edge of Beijing's business operators in terms of operating credibility provides online transactions with more important business environment support.
According to a report released by iResearch on July 20, the aggregate turnover in China's e-commerce market totaled 1.1 trillion yuan in the second quarter of 2010, an increase of 10 percent from a quarter earlier. iResearch believes that e-commerce will be the principal engine driving the development of the Internet economy.
Rakuten Baidu and Houmart have a presence in Tongzhou and six noted e-commerce enterprises including dangdang.com and vancl.com are in talks with Tongzhou District to establish a presence there.
In April 2010, Tongzhou issued the "Provisional Methods on Tongzhou District's Promoting the Development of E-Commerce Enterprises," under which the district will offer subsidies for office building construction, lease payments and tax refunds. Tongzhou will also provide convenient services for the introduction of senior talent as well as the review and approval of enterprises. It is said that the individual subsidy is as high as 1 million yuan.
Wu Sheng, assistant president of vancl.com, said that thanks to the support the municipal government has offered for the development of the e-commerce zone in Tongzhou District, a project by vancl.com will perhaps be launched in the zone.
Fang Yingzhi, an analyst with the China e-Business Research Center, believes that the special e-commerce zone that Beijing is striving to build will advance the development of the e-commerce industry and will likely become an e-commerce enterprise incubation base. Fang suggested that apart from attracting e-commerce enterprises to enter the zone, government departments should also pay attention to the development of related industries, such as encouraging the accelerated development of the supporting express service industry.